Borrowers waiting for lower rates?

Even though rates are low, borrowers are tending to adopt a wait and watch approach to their home loans. The reasons could be varied: job insecurity, expectations of lower rate or existing foreclosures.
According to Holden Lewis of Bankrate.com, fewer people are applying for mortgages, even though the average rate on a 30-year fixed remains below 6 percent for the 11th week in a row. Rates went up in the last week, so it's understandable that fewer people applied for mortgages. Still, it's kind of weird to see a lull in applications while rates are below 6 percent.

PrivoCorp, a loan processing company, has found that FHA refis are on the rise and now contribute up to a third of all the refis. For more information contact www.privocorp.com