The recent cuts in interest rates by the Federal Reserve has resulted in a rush by homeowners across the country to refinance their mortgages at today’s lower rates. Thirty-year fixed-rate mortgages now carry an average interest rate of 5.57 percent, down from 5.75 percent.

The Fed’s action was a response to worrisome economic and credit market developments that also have been pushing mortgage rates lower in recent months. Mortgage experts say that a mortgage is deemed “refinanceable” if it is 0.40 percentage point above current average mortgage rates. And the recent drops in mortgage rates have made up to 7 million mortgages, or more than 70 percent of U.S. mortgages, eligible for refinancing.

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