Feds cut rates to nearly 0% - good time to refinance again?

Question

Hi there, I refinanced last October to 3.25% but now the feds are cutting the rates to nearly 0%, do you think it’s a good idea to refinance again? Thanks for your help!

Giani Brussich · Answer

Literally, just had a phone call today about it and my lender essentially said the same as the above (backlogged, rates all over the place etc). Like others have said, it may be prudent to get your documents in order and start the process just in case. With that being said, the best rate for me today was 3.25%.

Clint G. · Answer

Rates have gone up from the time they bottomed out because demand for refinances and new purchases is so high, even with the 10 year bond yield dropping. It's supply and demand situation right now like @Scott Trench mentioned. Get the ball rolling on it now, and lock it when rates drop again.

Scott Trench · Answer

I agree with @Alan Dickson - there is already a refinancing boom, and the Fed lowering rates again today will only accelerate it and extend it. This is obvious - there's only an advantage to be had in refinancing for any homeowner or landlord.

I was going to wait a few more weeks personally, a move that I think is validated (accidentally from a market perspective and government action I certainly did not predict) by the Fed lowering rates.

For now, I'll continue to be patient and get ready to refinance when demand settles down again. A good time to complete your tax return and other documentation your lender will ultimately ask for.

Alan Dickson · Answer

I got an email from a lender that said that rates are all over the place right now, because of the workload they are taking on at this time. His advice was talk to your lender and start the process. They can get you ready for when the rates do go down and can lock you in.

Alan Dickson · Answer

There is going to be a lot of uncertainty in the near future, but in the next few years we will continue on. To get more clarity the best thing to do is talk to people and ask them questions. People will be bogged down for the next week or so, but reach out and keep in touch, there is much planning to do and we should have lots of free time...

Will G. · Answer

middle of a purchase and appraisals are seriously backlogged

Feds cut rates to nearly 0% - good time to refinance again?

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