The best writing on home loans
The Fed recently announced that it was going to buy over a trillion dollars worth of mortgage backed securities, which resulted in a drop in rates even further. The low rates are welcomed by consumers who have been battered by the struggling economy and slump in home values. Homeowners have been bombarded with refinance mortgage advertisements. Many are not waiting to see if the rates drop further. According to the Mortgage Bankers Association, during the third week of March 2009, mortgage applications were up 3 percent from the prior week and 80 percent of those were for consumers considering a refinance.