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Thursday, February 9 2012 - By Landon Myers
Mortgage drops are sparking an increase in refinancing and making it easier for Americans to find affordable housing.
Low interest rates and a rebounding economy are leading to record-low mortgage rates, making it easier for potential homeowners to find an affordable house and pushing those who already own homes to refinance their loans.

Moving trucks are expected to be in high demand in 2012 and the following years with the housing market on an uptick and Americans moving to their dream homes.

Mortgage rates have reached an all-time record low of 3.89 percent for a 30-year FRM after being stagnant at 4 percent since September. Now, mortgage brokers are scrambling to process all the applications for homeowners who are trying to refinance their loans.

"We've had a huge increase," said mortgage broker Andrew Soss, of Stewart and Soss Mortgage in San Jose, to the Mercury News. "I'd say over the month, we've had a 40 percent increase in applications."

According to the Mercury News, a $400,000 mortgage at 3.89 percent would be $263 a month less than it would have been in May 2010, when rates were at 5 percent.

With the unemployment rate now down to 8.5 percent, according to the U.S. Bureau of Labor Statistics, potential homeowners are finding jobs that will help them pay for their dream homes, leading to a better housing market and economic upturn.

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