What's happening to mortgage rates?

The average interest rate for traditional 30-year mortgages decreased to 3.09% last week, the lowest level since February, from 3.15% the prior week.

Rates continued to fall across the board this week for different length mortgages, except for a 15-year fixed-rate mortgage. All fixed-rate mortgages have decreased in interest in comparison to this time last year.

Analysts say this should offset the rising price of houses; low mortgage rates mean the cost to finance a house should stay the same or slightly decrease.

Despite this, home sales have fallen for the fourth month in a row as there simply aren't enough houses to buy. Rising home prices combined with insufficient supply has continued to impact the housing market.

The low-interest rates must also be seen in the context of rising inflation across the US which should offset the interest rates somewhat. Inflation rose to a 13-year high last month, a rise of 5.4% after a rise of 5% in May.

Is it a good time to refinance my house?

Melissa Cohn, an executive mortgage banker at William Raveis Mortgage, said now is a good time to revisit financing your mortgage.

It could be a chance for those who missed out on the low-interest rates of February to save some money on their mortgage.

And American homeowners are taking the opportunity to do this.