Homeowners everywhere are taking advantage of low rates as Fed cut rates. Mortgage brokers reported a surge in refinance applications as rates have come down to 5.06% for 30 year fixed.
The national average rate on 30-year, fixed mortgages was 5.06 percent on Wednesday, according to financial publisher HSH Associates -- the lowest since the 1960s and down from 5.3 percent Tuesday.
For borrowers with strong credit a mortgage rates of 4.5 percent are available as Fed cut rates on its federal funds rate Tuesday from 1 percent to range of rates from 0 - 0.25 and pledged to keep funneling money into the market.
Now it is the best time to refinance as rates are at their lowest, however not everyone can take advantage of these rates. Homeowners with bad credit may have hard time getting these rates as high credit score is required. Credit scores of 720 is needed to get good rates.
This is a call to action for anyone that has adjustable rate mortgage to get out and get into fixed with low interest rate.
Low rates should only provide a small boost to home sales as excellent credit is still needed to buy a home with at least 20% down payment.
Rates should come down on home equity loans as well rates tied to prime rates came down immediately after the Fed announcement on Tuesday.
Mortgage applications rose about 3 percent last week as refinancing surge continues. For homeowners who are unable to sell their homes, refinance might a one option to quickly cut their payment.
Susan Duey represents RateTake Mortgage marketplace. RateTake matches consumers with multiple lenders offering low mortgage rate quotes. Get your free Refinance Rate Quote.
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