Reliant Mortgage Company

Homeowners refinancing their homes are taking advantage of the lowest fixed-mortgage rates in the past 50 years, according to Freddie Mac's quarterly Product Transition Report.  The report indicates 95% of refinance loans completed in Q210 were a fixed-rate mortgage (FRM).

"The ability to lock in a principal and interest payment at below 5% for 30 years is rare enough," said Frank Nothaft, Freddie's vice president and chief economist.  "The share of borrowers shortening their amortization terms is at its highest level in six years."

Foreclosure filings in July dropped 9.7% from the same month last year, the second straight month of yearly declines, according to RealtyTrac.

After a 1% yearly increase in May, filings declined 6.9% on an annual basis in June and dropped nearly 10% in July.

July house prices gained 8.1% from July 2009, slowing somewhat from the 8.8% growth measured in June, as the effect of the homebuyer tax credit fades, according to data provider Clear Capital.

July house prices increased 7.9% from the previous three months, an improvement from the 5.2% growth seen in June. Alex Villacorta, senior statistician at Clear Capital said home prices are continuing their growth from the beginning of the year.

"This trend indicates that the initial upward momentum created by the tax credit expiration is being sustained," Villacorta said. "While quarterly gains are showing strong momentum across the country, these recent price advancements are just the latest turn in a volatile housing market that has seen 'W' shaped price trends over the last two years."