A lot of people think that a lower rate by the Federal Reserve means lower interest rates for the 30 year fixed mortages and other loan products. That isn't always the case because bond rates drive the fixed mortgage rates.
People usually try to lower their interest rate if the rate goes down by 1 point or more. Probably the best advice is to look at the cost it would cost you to refi and how long would it take for you to recover the cost. So for instance, if it costs $2000 to refi your home at a savings of $200 per month, then it would take you 10 months to recoop the cost of the refi. This would be a great time to refi because the savings would be worth the cost of doing the loan.
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