What do folks think about waiting until Mar 18 (for next potential Fed rate cut) or refinancing now. I know the mortgage rates aren’t directly tied to the Fed rates but some folks (including those that work at banks) think I should wait. I currently have a 6.0% interest only loan (no prepayment penalty) and the quotes I’ve received thus far range from 5.125% to 5.5% (for another 5/1 ARM interest only). Think I should wait or go for it?
No, it’s not ridiculous (my payback period on the closing costs is about a year so it doesn’t make sense NOT to – since I plan to be in the house 5 yrs)…the only reason my friend thinks I should wait is cause she thinks the rates will go down by 0.5% point by mid-late March. My question is – do folks think they will (not the Fed rate but the refi rates).