Bankrate.com national survey reports that the benchmark 30-year fixed-rate mortgage remained 6.44 percent.  The week’s survey had an average total of 0.3 discount and origination points.  A year ago, the mortgage index was 5.88 percent and four weeks ago, it was 6.48 percent. 

The central bank said that inflation is running higher than desired but that prices are likely to stabilize as the full effects of 17 straight rate increases take hold. But the Fed speculated that there is a greater risk of inflation rising than of the economy growing cold. The committee said it might have to raise rates again at some point, depending on the economic data that come in.

The 30-year fixed has fallen nine of the last 12 weeks. Two weeks had minimal rises: 2 basis points the week of July 19 and 1 basis point the week of Aug. 29. Other than those two minor blips and this week's unchanged rate, the 30-year fixed has fallen for three months straight, ever since it reached this year's high of 6.93 percent.

This three-month skid has been a welcome development for mortgage lenders. The mortgage business has fallen off since the housing market cooled. Now a refinancing wavelet has rolled in. According to the Mortgage Bankers Association, applications for purchase mortgages fell 3 percent last week compared to the previous week, but refinance applications increased 9.5 percent. Almost 44 percent of applicants are refinancing their mortgages.

Homeowners with ARMs are taking advantage of an opportunity to refinance into fixed-rate loans, says Quicken Loans economist Bob Walters. It's certainly a good time to refinance if you're worried that the monthly mortgage payment will be unaffordable after the rate resets. With the average 30-year rate below 6.5 percent, some homeowners could refinance at a rate below the rate they'll get after their hybrid ARM makes its first adjustment.

Edwina Baniqued