Mortgage Refinance Rates

Question: Any idea how low mortgage refinance rates expected to drop.?

(Posted by: homeowner933 on 2008-10-22 09:05:13)

Posted by: golferwhoworks on 2008-10-22, 09:08:23

No one can answer this as it is all market dependent and that changes all day long

Posted by: oracleofohio on 2008-10-22, 09:11:04

I just read an article and it said rates are a little higher than they were over the summer. Since the new housing numbers just came out, I bet we'll see rates drop again soon. New home mortgages and refi's are at an 8 year low. I guess it's all up to Prince Bernanke...

Posted by: Steve D on 2008-10-22, 09:11:29

Unless the Fed lowers the interest rate again, I would not expect them to drop - right now, with the credit crunch, demand is probably higher than supply, a classic situation for an increase in rates, not a decrease. However, since most re-fi interest rates are tied to an index (LIBOR, 10-year T), demand will not have quite as much effect as it might normally.

Posted by: Net Advisor on 2008-10-22, 09:14:31

The Fed Funds Futures are pricing in another 1/ 2 point rate cut by December. It could happen by the end of November. I don't know for sure if this will happen, but that is the current prediction. The problem is the lower rate will help all this massive US debt and home owners but will drive up inflation. I have been arguing for about a year that we run the risk of "Stagflation, " (inflation with a recession).

Posted by: Clark Kent on 2008-10-22, 09:23:27

I got a mortgage for 4.75% when rates hit bottom a few years ago. They may get that low again.