Todays Home Mortgage Refinance Rates

Mortgage Rates  remain at modest levels. Experts advice homeowners and homebuyers to put their ducks in a row in anticipation of an improved economy within the next three years greatly impacting the housing market.

30-year fixed from 4.125% (4.777 APR)
5/1 ARM from 2.625% (2.926 APR)
15-year fixed from 3.250% (3.377 APR)

Housing Market Rebound Predictions

Mortgage Rates for Tuesday June 28, 2011 fluctuate slightly higher for 30 Year Mortgage Rate as points creep up to 4.42%.  Experts advise potential homebuyers concentrate on improving their financial status and and homeowners focus on raising the value of their properties with minor repairs at this time in anticipation of an improved market within the next three years or so. 

Home Refinancing At Lowest Rates

For several months now home loan interest rates have been cut in an effort to stave off inflation. US benchmark interest rates are at the lowest level since June 2004 after the Federal Reserve this morning cut its key interest rate from 1.5% to 1%.

Having cut the fed rate six times one would think the economy would make a come back but with the stock market crash only days ago the eonomic turnover for the better seems distant.

Still the constant cuts are good for those shopping low mortgage interest rates. At the lows just keep coming. San Francisco Federal Reserve President Janet Yellen said the Fed could lower rates below 1%, and that they could reach as low as zero amid a weak economy. If the Fed do cut rates to 1% this would be the lowest level since June 2004.

What effect did this low level cut have on the economy? Will this cut produce long term economic stability? Only time and a little hope will tell. Just remember it's been done before and not so long ago. And although it's a drastic move to fend off a serious downturn it is indeed a home buyers market and a home refinancing treasure trove.

Homeowners with 2nd Mortgages Get Some Relief Refinancing

As the Fed cut rates consectively to revitalize the economy homeowners are seeing a golden opportunity to save money and reduce credit obligation. With the recent drop in interest rates, homeowners carrying two mortgages are deciding to refinance, combining both the first and second mortgages into a single loan at a better interest rate.

If one of your current mortgages already carries a low interest rate, you should only refinance it if you can match or better the rate with your new loan.

Although you do not have to combine both mortgages in order to refinance if both rates are high and current rates are significanly lower, say .50 basis points lower why not do so if you are able. You should be able to reduce your interest charges dramatically.

What ever you do get out of that ARM. No one really knows what the economy will look like months ahead.

That said get out of the ARM as soon as possible. ARMs are volatile and can alter your financial situation drastically. Get into a fixed rate ASAP.

The Fed is expected to cut rates .50 bps following a historic rate cut of .75 bps just last week. It now is at 3.5 percent, but is expected to drop to 3 percent at the Fed meeting Jan, 30th 2008.

Banks would be expected to lower their prime lending rate by a corresponding amount — from 6.5 percent to 6 percent. The prime rate applies to certain credit cards, home equity lines of credit and other loans. That means both the funds rate and the prime rate would be at nearly three-year lows.

Compare home mortgage rates offered by lenders to those you currently have. You may be able to save hundreds if not thousands over the life of the loan refinancing at today's lower rates.

Fed Prime Drops 0.50%

The Fed Prime Rate drops 0.50%. That's a significant low. Meanwhile, following the release of the September 18th minutes of the Fed's Open Market Committee (FOMC) meeting, financial markets reassessed the likelihood of another rate cut at the upcoming October 31st meeting. The market currently is looking for about a 30 percent chance of a 25 basis point rate cut rather than the 50 percent chance that they had previously expected.

A HomeBuyers Market?
Homebuyers paid 7% or 8% during the mid- to late-'90s, and double-digit rates were the norm throughout the '80s and early '90s. Compare that to todays rates and the talk about rates cuts and it's easy to see why it may still be a homebuyers market.

Can homeowners still save when refinancing? Refinancing savings all depends on when you bought your home and what rates were at the time. Currently homeowners can realize a savings if refinancing rates are 30 or more base points lower that ones current rates.

30 Yr Fix 6.37% 0.03%
15 Yr Fix 6.03% 0.05%
1 Yr ARM 5.58% -0.07%
5/1 ARM 6.11% -0.10%
30 Yr Tres 4.87% 0.10%
Fed Prime 7.75% -0.50%

To find out how much loan you can afford use the refinance calculator at
http://refinanceloanrates.fimark.net