Rates on a 30 year mortgage fell last week to 4.78% causing homeowners to refinance and prodding new home buyers into the market.
Although Chase Bank repots a backlog in refinance applications, a 60 day lock is being offered so consumers don’t lose out on the rates.
Banks have noticed a spike in mortgage applications as well. Since home values have come down along with rates, people have more buying power.
These low rates push more people to buy homes and add access to additional cash flow.
The historically low mortgage rates are a result of the $750 billion the Federal Reserve pledged to Fannie Mae and Freddie Mac to buy mortgage backed bonds.