Interest Rates Plunge,
Borrowers Rush To
Refinance
Homeowners everywhere are taking advantage of low
rates as Fed cut rates. Mortgage brokers reported a surge in
refinance applications as rates have come down to 5.06% for 30 year
fixed.
The national average rate on 30-year, fixed mortgages
was 5.06 percent on Wednesday, according to financial publisher HSH
Associates -- the lowest since the 1960s and down from 5.3 percent
Tuesday.
For borrowers with strong credit a mortgage rates of
4.5 percent are available as Fed cut rates on its federal funds rate
Tuesday from 1 percent to range of rates from 0 - 0.25 and pledged
to keep funneling money into the market.
Now it is the best time to refinance as rates are at
their lowest, however not everyone can take advantage of these
rates. Homeowners with bad credit may have hard time getting
these rates as high credit score is required.
This is a call to action for anyone that has
adjustable rate mortgage to get out and get into fixed with low
interest rate.
Low rates should only provide a small boost to home
sales as excellent credit is still needed to buy a home with at
least 20% down payment.
Rates should come down on home equity loans as well
rates tied to prime rates came down immediately after the Fed
announcement on Tuesday.
Mortgage applications rose about 3 percent last week
as refinancing surge continues. For homeowners who are unable to
sell their homes, refinance might a one option to quickly cut their
payment.
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