Fixed Rate Loans: 'Next Mini Refinancing Boom'

While the last mortgage boom was all about people getting the lowest rates possible, usually through aggressive adjustable rate mortgages, mortgage brokers are licking their chops over the next wave of refinancings expected to be driven by people jettisoning their ARMS in favor of boring old fixed-rate loans. “My view is that this will become the next mini refinancing boom,” said Dana Gompers, chief executive of First Houston Mortgage. In addition to fears of harsh resets on the ARMS, more traditional mortgages have been helped recently by a down-tick in long-term rates over the last couple of months: As a result, the average 30-year mortgage rate has fallen more than 0.4 percentage point since late July to 6.37 percent. The Mortgage Bankers Association reported that refinancing apps jumped 17.5 percent in the last week of September to the highest level this year. What’s the best rate for a 30-year fixed that readers have gotten in the last few weeks?
Homeowners Eyeing Mortgage Rate Escape Hatch [Reuters]