Will the prime rate for 20 yr fixed mortgage loans decrease further?
My parents are considering refinancing. Should they do it now or wait a few months?
By
Praveen Pradeep
Posted on
03/22/08 Total Answers
1
Answers-
I doubt it. Everything I've read and seen points to the Fed not reducing rates any further in the near future. The dollar is very weak and any further reduction could have very negative effects on the economy.
Watch the 10 year T-Bill. This is what most mortgage companies use to determine interest rates. If it drops average mortgage rates should drop.
I believe if you are going to refinance you should probably do it now. It looks like the dollar is set to rally with no further cuts from the Fed.
