Mortgage rates fell to the lowest level since May as home-loan refinances surged. Rates had reached record lows of 4.5% for a 30yr fixed rate loan in April until the end of May where they spiked over 1½% in two days time.

Since then they've slowly edged back down - Today the average 30-year rate fell to 5.14 percent, down from 5.20 percent. The 15-year rate was 4.63 percent.

Some more technical data:
     - Overall home loan applications rose 4.3 percent this week:
            * Purchase applications fell 9.4 percent 
            * Refinance applications rose 18 percent
     - The global mortgage crisis has cost the world's financial firms almost $1.5 trillion in losses so far.
     - The Federal Reserve kept the federal funds rate at between zero and 0.25 percent last month.
            * Their statement at the time was "The rate will stay at "exceptionally low levels" for an "extended period".

At this point the Fed is pleased with how their programs have positively affected the financial system and economy as a whole, so the general concensus is that we're going to see "more of the same" out of the Fed.

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I specialize in working with first-time homebuyers across the state of Florida. I know FHA, VA, USDA Rural Housing loans inside & out and would love to answer any questions you might have.

 I can be reached at the following:
   *Phone: 386-754-8500
   *Email: dan@meridianFL.net