Mortgage Rates Are Dropping - What Is Your Strategy?

[Joseph Coleman]

Mortgage rates are falling, and CME futures suggest even more drops ahead. Refinance activity is expected to pick up soon. If you’re planning to buy, will you wait for even lower rates or buy now and refi later? 

For recent buyers, are you considering a refinance as rates drop?

My situation: I have an FHA loan at about 5.5% and my understanding is that it usually makes sense to refi once rates are about .5% lower than your existing rate, which means I may need another .75 to 1% decrease in the rate. So I will wait to refi but watching closing. Any other suggestions/thoughts are appreciated.

Sources:

• Optimal Blue OBMMI

• CME FedWatch Tool