Quote:
Originally Posted by RallyJon
That is the big question. If the Fed's rate cuts have the desired effect and DO stimulate the economy, then mortgage rates won't fall any more. Best case for low rates is if everyone believes we're headed into recession I guess.
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I can tell you they fell hard yesterday - I was amazed myself.
Always remember that "rate" in and of itself isn't a reason to do a loan. The refi has to be justified in one of three ways
1)- debt consolidation - paying off and lowering monthly payments you can't afford
2) accelerated payoff - doing the refi gets you a lower payment that when reinvested into the home pays the house off quicker than presently being done
3) cash need - you need the money for something else - medical, biz opportunity or whatever.
Never fall into the "better rate" belief - for instance saving 2% on rate means nothing if the payment goes up and it's back out to 30 years - that happens in a lot of scenarios where it's just simply lowering rate. The only person who benefits is the guy writing it.
rjp