The Mortgage Rate Limbo: How Low Can Rates Go?

By Matt Jablow

Banks are already getting a lot of inquiries from people about refinancing their home mortgages after yesterday's decision by the Federal reserve to buy up more than a trillion (yes, trillion with a "t"), dollars worth of government bonds and mortgage-backed securities.  Rates dropped about .25% overnight on the news and some bankers believe they could go as low as 4.5%.  Even around 4.75%, where they are now at many Long Island banks, the rates are as low as they've been in about 25 years.  Should you refinance? If you have a steady job, solid credit, and the value of your house is at least twenty percent more than the balance on your mortgage, you might want to at least consider it.  www.bankrate.com is one of many web sites that will help you figure out if it makes sense for you.  Good luck!