The Fed dropped its target lending rate for banks to "zero to .025". That's a quarter of a percent. Moreover, the ten year treasury bills are selling for under--well under--3%. What do these things mean?
Probably, that mortgage interest rates, already historically low, are about to plunge further. Also, that the world is ending--but don't worry about that right now.
"They" (you know, "they") say that it usually makes economic sense to refinance when rates drop 1% below what you currently pay. I would not be surprised to see 30-year-fixed rates drop below 4%. UncleSam? You should refi. Seriously.
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I have a home equity account. Can I refinance that?
ReplyDeleteYou sure can. And if the interest you are paying now is greater than about 5.5%--and it almost certainly is--a refi is probably a good idea. But you can afford to wait. The Fed has signaled it's going to keep rates low for a very long time.
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