Mortgage Rates Remaining at Record Lows

By: Zachary Pienkowski

In an attempt to jump-start the residential house market, mortgage rates are remaining at all time low rates below 5% which is encouraging homeowners to refinance their 30 year mortgages as a lower rate. In many cases homeowners that refinance their mortgage can save between $100-$200 on their current monthly payment. The Mortgage Bankers Association reported this past week that applications for refinancing of current mortgages rose 18% since last Wednesday. The Federal Reserve recently made an announcement that mortgage rate will continue to remain at a low level in order to boost the economy, but warn that the rate will not stay this low for long. When asked when the estimate was for the rate to increase, they simply said the rate could move higher quickly and homeowners who are considering refinancing should not drag their feet. The low mortgage rates are not only encouraging homeowners to refinance but they are also encouraging hesitant first time home buyers to take the leap and apply for a home. Mortgage applications rose to a 19 week high since the beginning of the year ending the week of October 2. Buyers need to beware though because these low rates do not include add-on fees known as "points". Points vary by the type of loan they are associated with, but they make the actual mortgage rate look deceivingly low because they are a significant unadvertised added cost.

http://finance.yahoo.com/news/Mortgage-rates-remain-below-5-apf-2372074252.html?x=0&sec=topStories&pos=2&asset=&ccode=

http://www.marketwatch.com/story/freddie-mac-30-yr-mortgage-average-still-falling-2009-10-08?siteid=yhoof2

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