Rates have been trending lower and there's a lot of speculation that the Fed will cut rates further. It's important to remember that the Fed does not control mortgage rates, they control the Fed Funds Rate…and the two don't always correlate. So even if rates do drop a bit more, is it wise to wait for that potential drop or refinance now? A recent report from Black Night says that over 9.7 million homeowners would currently benefit from a refinance with significant savings.
If it makes sense to refinance now, it may be wise to take the sure thing because there is never a guarantee on where rates are headed. If the refinance is done with very little closing costs, there could be a lot of benefit without much investment. And we could always refinance in the future, with little cost.
Even if rates do drop at some point in the future, what about all the money that could have been saved in the meantime? It would take a very long time to recapture that lost savings with the small incremental benefit from a slightly lower rate. But each individual refinance has different individual needs and objectives, including some potential debt consolidation. Let me know if you would like to talk about what options and savings are possible, and if it might make sense for you to consider refinancing.