Lately there was not much of anything that can make homeowners happy but now a new report from Freddie Mac finds has found that those Americans by whom their home loans have been refinanced during the second quarter of 2009 reduced their payments by $3.4 billion.
It has also been reported by the quarterly refinance report that half of homeowners who refinanced their mortgage have witnessed a fall of at least 20% in their interest rates.
It has been said by Freddie Mac’s Frank Northaft that the homeowners were greatly helped by fixed-rate interest rates which has hit a 50-year low during the second quarter of the year and 30-year fixed rate mortgages which has reached up to a record weekly average lows of 4.78% on two separate occasions in April.
Frank Northaft has said that Fixed mortgage rates are still very low, although it is true that they have climbed up a bit from their April lows. He further said that they are expecting more than one-half of originations to be for refinancing throughout the rest of the year as long as rates stay near their current levels of 5.25 percent.
But we can see that the number of people seeking refinance has dropped in recent weeks as the Mortgage Bankers Association Refinance Index for the week ending July 24 has fallen 10.9 % from the previous week.