This is the question everyone asks me when start talking about whether now is a good time to refi or not. This past week and a half with the rates dropping I have received many, many calls. I have also placed calls to clients who asked me to let them know when the rates start to fall. The funny thing though is everyone becomes an expert. Either they knew this was going to happen or they know that the rates will go lower? I have been in the business about 12 years now. I have seen rates higher but rarely are they lower than they are right now today. The real question is not, are rates going to drop but, are you happy with the rate being quoted? In my opinion you need to decide what rate you are looking for and when it drops to that lock it in. Just like it is impossible to time the stock market, it is also impossible to know when to lock an interest rate.
When people ask me if the rates are going to go lower I tell them the truth. I don't know. What I do know is that we are basically at historical lows. If you will save money and are planning on staying in your home long enough for the refi to make sense, LOCK IT IN. If you wait even 1 day the rate could be dramatically different.
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