Will Interest Rates Stay Low?
The New York Fed’s Dudley stated yesterday that he sees interest rates staying low for a long time due to high unemployment and deflationary worries. He very well may be correct but do not let this influence your decision to lock your interest rate in or holding off on a refinance. Interest rates are at historic lows. You always want to speak with a mortgage professional who follow mortgage-backed securities, they are what move interest rates and also known as mortgage bonds, and economic data to advise you on what to do.
When it comes to a refinance, many people forget that every month they wait to refinance because they think rates will drop further are losing money every day because they are paying interest at their current rate which is a higher interest rate. I don’t know how else to say this so here it goes, don’t be greedy. In 2 years you will be bragging to all of your friends how your interest rate is in the high 4 percents or low 5 percents.