by Sandra Bazen Cobb

Created on: December 28, 2008   Last Updated: January 13, 2009

As of the end of the day on December 27, 2008, the current national average of the mortgage interest rate is at 6.01 percent on a 30 year fixed loan. Not surprisingly, the increase in mortgage applications for new home loans and refinanced loans continues to rise, and is up 48 percent for the week of December 19, 2008. Hopefully, this home-buying trend will give a much needed boost to the faltering U.S. economy.

Potential buyers are showing their financial intelligence by taking advantage of these low rates. Current homeowners with an adjustable rate mortgage will also be seeing the savings of the lower interest rate, although they still have to decide if it might be wiser to refinance at a low fixed rate.

Mortgage loan application statistics show that during 2006, 37 percent of Americans who applied for mortgages, did so online. Many financial websites now offer free online tools that help the consumer calculate their home affordability, potential mortgage details and credit worthiness. Most financial institutions also offer the option of applying online. It would not be surprising if the data for 2007 and 2008 shows an increase in online applications once it has been compiled and released.

How long will these low rates last?

The Mortgage Bankers Association,an organization that represents the real estate finance industry in communities around the nation, has predicted that the interest rates will remain low throughout 2009.However, in light of the projected increase of unemployed Americans, the number of new home sales is still expected to decline. The good news is that those with secure jobs, if there is such a thing, or those who are secure financially by other means, can continue to upgrade their lifestyles by purchasing a new home and saving a ton of money while these interest rates remain low.

Who benefits from the low interest rates?

Currently, the American consumer who is looking to purchase a home or refinance an existing home loan, is on a winning streak they are not likely to see again any time soon. 2009 is definitely the year for the consumer to consider purchasing a new home. Not only will they save money with the low interest rates, but they can get more house for their bucks. Mom and Dad can consider adding a home office or study to the home plans, where they can quietly focus and keep up with the stock market and financial trends.

As for the business winners, according to an article posted on the Power Options website, PowerOpt.com, "WELLS FARGO (WFC) has weathered the storm better than most, having sold away their bad loans quickly."

JP MORGAN CHASE (JPM) has also managed to fare better than some of its competitors. The fact that they operate in over 60 countries, have acquired Washington Mutual, and continue to help families facing foreclosure, purveys an impressive vision of JPM's long-term future success.

CITIGROUP INC. (C), is also expected to survive and do well. They currently have over 200 million customers in over 100 countries. The range of their diversified services for individual consumers, businesses and government institutions has helped them to weather this painful economic crisis.

Consumers and the mortgage finance industry aren't the only possible beneficiaries. Investors also have a chance to benefit from the low interest rates. Predictions based on statistics and trends show that 2009 has the potential to be a booming year in the mortgage arena.

Mortgage-related investing is certainly a viable option for savvy investors.

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