(New York, NY)  --  A refinancing frenzy is underway in America as mortgage rates continue to fall.

   With last weeks announcement by the Federal Reserve that it would buy $500-billion In mortgage-backed securities guaranteed by Fannie Mae and Freddie Mac loan funds were freed up and rates dropped quickly.

   A 30-year fixed rate mortgage could be found Wednesday under 5.25-percent.

   Now there are reportedly talks underway between the Treasury Department and those two giant lenders designed to drive rates to a target four-point-five-percent.

   The "New York Times" says refinancing made up more than 69-percent of all mortgage applications last week.
   Bob Walters is the chief economist with Quicken Loans.

   He says loan officers were up past midnight trying to fill the needs of all the people who'd been calling.
   Business, he says, quadrupled last week.

   Business could be even more brisk this week as homeowners try to bail out of adjustable rate mortgages or save each month with a fixed rate lower than they currently have.

   Credit is easier to come by this week.

   Brad Blackwell, national sales manager at Wells Fargo Home Mortgage says "borrowers with reasonably good credit and a home that hasn't lost too much value are going to find mortgage money plentiful and readily available."  The key is to have pristine credit, a score of 720 or higher and a minimum ten-percent equity in a home.

   Many Americans are currently upside down in their homes, owing more than the house could be sold for, so a new mortgage isn't likely to happen for those who may need it most.

   Borrowers with large credit card or other debts, low credit scores or the self employed need not apply just yet.

   Rick Dunham, vice president of Impact Mortgage Network in Arizona says, quote, "you can imagine how many inquiries we get where we are done just as soon as we are done talking."


   (Copyright 2008 by Newsroom Solutions)