Homeowners rush into fixed-rate mortgages
August 24th, 2006 • Finance, Loan Programs, Real Estate
Yesterday I wrote about interest rates for 30 year fixed mortgages dropping for four weeks in a row. Lo and behold the public has noticed:U.S. homeowners continue to rush to refinance their mortgages, as interest rates have fallen back to a five-month low, data from the Mortgage Bankers Asssociation showed Wednesday. The number of applications for mortgages filed at major U.S. banks rose 0.1% last week on the increase in refinancings, the industry group said.It's a modest gain to be sure but expect more gains as this is a lagging indicator. The yield on the ten year held steady today at 4.81 and all signs point to no big changes tomorrow. If Bernanke listens to the Asian markets, the trend may continue.