WASHINGTON, Jan. 16 (UPI) -- Falling mortgage interest rates are prompting a rush to refinance home loans as U.S. homeowners seek to take advantage of the opportunity, bankers said.
Interest rates for 30-year fixed-rate mortgages have fallen for 11 consecutive weeks, with the average rate reaching 4.96 percent, The Washington Post reported Friday.
Many homeowners are sending applications to more than one lender, said Doug Duncan, chief economist at the Federal National Mortgage Association.
"There's no question there are multiple applications being done," he said. "The economic incentive to refinance is so strong with rates being under 5 percent."
With the housing market in near collapse, many find themselves owing more on their current mortgage than their home is worth, locking them out of a chance to refinance, USA Today reported.
To qualify for new rates, lenders may have to first pay off their home equity loans. They also may need a credit score of at least 720 out of a possible 850.
Inside Mortgage Finance reported that average credit scores for borrowers with loans sold to Fannie Mae or the Federal Home Loan Mortgage Corp., had reached 748.
"That's incredibly high," said the trade magazine's publisher, Guy Cecala.
