Mortgage rates reached new lows yet again this week with the 30-year fixed at 4.42 percent, down from last week's 4.44 percent.
The refinance share of mortgage activity increased to 81.4 percent of total applications from 78.1 percent the previous week, which is the highest refinance share observed since January 2009, the Mortgage Bankers Association said.
Freddie Mac also reported another low for the 15-year fixed rate this week at 3.9 percent, down from 3.92 percent last week.
Remember, every 1% change in interest rate is similar to a 10% change in affordability. If you can afford a $500,000 house today at 4.375% ... you would only be able to afford a $450,000 house if interest rates increase to 5.375%. As such, even ifyou think prices may come down a little more before hitting the "bottom", it doesn't make sense to try and time prices and interest rates. Start shopping NOW!
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