More Mortgage Rates Fall!! YAH!

Last week's government report that the economy slowed down from July through September helped push rates down on 30-year, fixed-rate mortgages this week to their lowest level in a month, according to industry observers.

Freddie Mac reports that 30-year, fixed loans averaged interest of 6.31 percent this week, compared with 6.40 percent last week and 6.30 percent four weeks ago. The lower borrowing costs could lead more home owners with adjustable-rate mortgages, which are scheduled to re-set upwards over the next year, to refinance, says Frank Nothaft, chief economist at the mortgage finance giant.

"We are also seeing a higher number of home owners who are taking cash out of their homes for home improvement or other needs rather than opting for a prime rate home equity loan now that the prime rate is over 8 percent," he adds.


Source: Baltimore Sun (11/03/06)
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