Last week, mortgage applications rose by 8.5% according to the Mortgage Bankers Association, providing something for the housing market to be thankful for. This represents a return to the trend in mortgage applications, probably with a little help from the extension of the first time home buyer tax credit. However, most of the mortgage applications were for refinance efforts.

Indeed, refinancing remains rather popular right now, with record low rates. A 30-mortgage can be had for 4.88%, and a fifteen year fixed is at 4.33%. ARMs are still above 6% in many cases. However, in order to get the best home mortgage rates, you will likely have to pay points. This is an amount equal to 1% of the amount being financed.

If you have been thinking of refinancing your home, now is a good time to do it — if your credit is good enough to allow you the best mortgage loan interest rate.