A surge in refinancing is taking place following the recent rate cut by the Fed.  According to Reuters, applications at mortgage banks have surged anywhere between 50 and 230% — all while mortgage rates have reached their lowest level in 4 years. Yesterday, Freddie mac said that mortgage rates had fallen for the fourth consecutive week to their lowest level in almost 4 years — with the 30-year fixed rate conventional loan averaging 5.48 percent.

In addition, the Mortgage Bankers Association said that refinancing activity made up 66% of total mortgage applications for the week.  This was up from the 63% for the prior week and significantly higher than the sub-50% just a few months ago.Are all of these people who are looking to refinance borrowers who are in trouble and about to lose thier home or are they just ordinary homeowners who are taking advantage of lower rates?  I don’t know – but it is safe to say that if you are currently just an “ordinary homeowner” who is NOT in trouble and NOT late on your mortgage payment and your current interest rate is between 6 and 7%, there is an excellent chance that you could benefit from refinancing.Rates are lower now than they have been in a long time.