Mortgage Applications at Year High

Not since the beginning of the year have new mortgage applications been as high as they were last week. Falling interest rates contributed to the rush of new mortgage applications, which rose by more than 4% from the week before. Refinances applications were the highest they have been since October of last year, with most lenders reporting that the majority of refinancing has been out of adjustable rate mortgages. More than $1 trillion in adjustable rate mortgages were set to readjust in the beginning of 2007, making now a perfect time for homeowners to refinance out of their previous mortgages.

Though both fixed rate and adjustable rate averages dropped this week, analyst are saying that the reprieve will be short lived. Those homeowners interested in a new property or refinancing a current home should move quickly. The average 30-year fixed mortgage rate was 6.15, the lowest offered since January. The average rate for adjustable mortgages was also down to an amortized (index and margin) rate of 5.87. \r\n