With Mortgage Rates Dropping, Is it Time To Refinance?

Is there going to be a refinance Boom? Mortgage rates dropped this week on weak economic data. A disappointing jobs report, slow service sector growth sent mortgage rates lower this week while refinancing activity rose. The 30 year Fixed Mortgage is at its lowest level in the last 30 months. The answer is yes for some, no for others. If you have equity and it makes sense with respect to your financial situation and goals, then there may be a mini refinance boom. But for a large segment of the community, their equity has depreciated away, as has their ability to refinance. If you are in the middle and do not know if you have the minimum required 5 to 10% equity, then you need to act fast before any more of your equity is depreciated away.

What group do you fall into? Be prepared to act before the next Fed meeting on January 30, 2008. Market expectation is for the Feds to cut rates a full ½ point (0.5%). If the Fed does, rates most likely will rise right after their announcement. But if the Feds do the unexpected and only cut the Fed fund rate ¼ point, rates will skyrocket. So act now. Remember that mortgage rates come down slowly and rise quickly.