Sunday, December 7, 2008

A Rush Into Refinancing as Mortgage Rates Fall

Last week, the Federal Reserve took actions to increase liquidity in the U.S. market by planning to buy $500 billion in mortgage-backed securities guaranteed by Fannie Mae, Freddie Mac, and Ginnie Mae. Mortgage rates dropped quickly, leading to a surge in refinancing activity.

The 30-year fixed-rate mortgage averaged 5.53% for the week ending Dec. 3, its lowest point since late January.

The 15-year fixed-rate mortgage averaged 5.33% this week, its lowest point since March.

Read A Rush Into Refinancing as Mortgage Rates Fall

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