Mortgage refinance demand jumps 14% as rates fall to lowest point since August

After surging over 8% in October, mortgage rates are falling back toward 7% again, and that is jump-starting the refinance market. The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances recently decreased to 7.17% from 7.37%, with points dropping to 0.60 from 0.64 for loans with a 20% down payment, according to the Mortgage Bankers Association.