Mortgage Refinance Rates At 50 Year Low Applications Rise

With mortgage rates at a 50 year low figures indicate that Mortgage refinance business made up 77% of last weeks mortgage business up 3% from the previous week.

A lack of invester confidence saw money moved into Treasury Bonds causing their yeilds to fall and with it interest rates. The lack of invester confidence is a result of speculation on the european debt crisis.

“Mortgage rates for all but traditional 1-year ARMs hit all-time record lows this week in our survey while activity in the housing market slowed in May following the expiration of the homebuyer tax credit,” said Frank Nothaft, Freddie Mac vice president and chief economist

Mortgage refinance for bad credit borrower’s could also benefit with HAMP helping stop foreclosures lower rates could make it advantageous to refinance under mortgage loan modification criteria.

Of course other factors need to be considered before commiting to a mortgage refinance such as arrangement fees which can often be the deciding factor because that sum needs to be recouped quickly from any savings of a lower interest rate to justify the mortgage refinance.

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Posted by Poppy on Jul 1 2010. Filed under Featured News, Finance. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry