Refinancing in Period of low interest rates is an important force in support the property market this year. In the default case and the increase in foreclosure cases and housing prices fall,  refinancing is a rare bright spot for the property market.

30-year mortgage rates from 4.875% a week ago, rose 5.5%, which contained all the homeowners refinancing activities. The bond market rose last Friday to ease its impact, but mortgage rates rise in the rate means that nearly 4.5% earlier this year of low interest rates, which is gone forever.

Murten, president of Americana Mortgage Group,pointed out that many homeowners were caught flat-footed, since they have been heard on the news is the Federal Reserve will maintain low interest rates, some paranoia even expect mortgage rates can be reduced to 4%.

Over the past week 30-year fixed  mortgage rate increased substantially due to rising U.S. bond yields, the risk for investors holding mortgage-backed securities increased.  

This makes the Federal Reserve plans to hold down mortgage rates discounted the effects. Since the mid-week of March,the Fed buy mortgage-backed bonds more than 20 billion U.S. dollars  to curb mortgage rates .

Analysts believe that the Fed must intensify their efforts to effectively hold down mortgage rates, may be could purchased  the efforts to reduce public debt bond yields, bond yields is an important reference point for mortgage interest rates.

A recent industry report showed that second-hand housing sales growth,but backlog of housing is also increasing, and prices fell. U.S. S & P / Case-Shiller house price index showed house prices in the first quarter 2009 fell by 7.0%.

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