Monday, November 1, 2004

Mortgage Refinancing Rates Hit Six Month Low

Long-term mortgage rates are at a six-month low nationally, with the average 30-year fixed-rate mortgage falling to 5.64 percent, down from last week's 5.69.

The lower mortgage rates have spurred sales of both new and existing homes, which climbed in September to the third-highest levels in history.

Housing affordability remained historically high in September. Last week, the refinance share of overall mortgage activity inched up from 44.5 percent to 45.6 percent, according to the Mortgage Bankers Association. From the look of current rates and the fact that housing purchases are heading for a seasonal decline now is probably a good time for homeowners to refinance to consolidate debts or cash out equity.