Refi madness

Falling interest rates are leading to a rush to get cheaper mortgages. Should you join in?

NEW YORK (CNNMoney.com) — Falling interest rates are fueling a mortgage refinance frenzy as homeowners rush to reduce their housing payments.

The average rate for a 30-year, fixed mortgage dropped to 5.08% last week, according to the Mortgage Bankers Association, more than a full point lower than just a month ago.

Mortgage applications were up a whopping 48% last week, according to the MBA and more than 80% were from homeowners looking to lower housing costs.

“It’s snowing loans,” said Steve Habetz, a Connecticut mortgage broker, “and they’re all refis.”

(Source: CNN Money)