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Tuesday, November 25, 2008

Mortgage Rates Fall: 30 Year Fixed at 5.5%

by Calculated Risk on 11/25/2008 08:38:00 PM

From Bloomberg: U.S. Mortgage Rates Fall on $600 Billion Fed Plan

U.S. mortgage rates fell more than three-quarters of a percentage point today ... The average U.S. rate for a 30-year fixed mortgage ended the day at about 5.5 percent after falling to as low as 5.25 percent, according to Bankrate Inc. It was 6.38 percent this morning ...
And refinance activity has picked up immediately, from the WSJ: Fed Aid Sets Off a Rush to Refinance
The Federal Reserve's attempt to stabilize the housing market set off a chain reaction across the U.S. on Tuesday, dropping interest rates and quickly spurring a burst of refinancing activity by borrowers eager to lower their mortgage costs.

Some brokers said it was the most activity they've seen in at least one year, although there was no way to determine to volume of refinancing.