The average rate on a 30-year fixed-rate mortgage dropped to 5.14% last week to a new record low, according to Freddie Mac. A year ago, the rate was 6.17% for a comparable loan. As a result, mortgage applications last week jumped to the highest level in 5 years, with more than 80 percent of the applications for refinancings. Thre also was a 11 percent increase in applications for home purchasers.
Be sure to visit Todd’s blog for an update on what to expect in the mortgage industry for 2009.
