A surge in refinance applications is due to lower last week's mortgage rate. The ratesÂ are even lower this week. 30 year fixed benchmark rate is 5.92% according to bankrate.com
One year ago it was 6%, four weeks ago, it was 6.44%. 15 year fixed rate was 5.67&5/1 arm fell to 6.14% About 7 out of 10 applications were refinanceÂ & rest were home buyers.Â Â
Treasury considers encouraging banks to offer Mortgages as low as 4.5%. This is a step to push new home sales&re-finance activity. Government officials are under preasure too address falling prices&mounting forclousers, which under pin financial crisis. To aply for loans borrowers would have to document their income & afford their monthly payments.