Mortgage Rates Fall for Second Week

Mark Ellis — Thu, 09 Jul 2009 18:00:31 +0000

Those who missed out and did not refinance their mortgage earlier this year when mortgage rates were at longtime lows may soon have another chance. The average 30-year-fixed rate mortgage stands at 5.2 percent, down from 5.32 percent last week, compared to an average of 6.37 percent just a year ago.

The main cause behind the falling mortgage rates seems to be the struggling job market, with skyrocketing unemployment numbers creating market concerns. Unemployment is at 9.5 percent, the highest rate since 1983, and 467,000 jobs were shed across the country in June alone.

People are already taking advantage of the situation. The Mortgage Bankers Association reported an 11 percent increase in mortgage applications this week, mostly due to a sudden interest in refinancing and the largest amount of home purchase applications in three months. It remains to be seen whether or not mortgage rates will continue to fall, but the murky outlook for the labor market will probably keep mortgage rates in check for now.

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Mortgage Rates Fall for Second Week