The Fed has now moved the federal funds interest rate closer to, well... 0%. (In effect, the target range for rate is zero to 0.25%.) Today we're talking to Tom Petruno about what this means for you, but you should look at what this means for your mortgage rate. Check this out:
With mortgage rates nearing their lowest levels in a generation, homeowners hoping to refinance should already be working the numbers to see whether a new loan will work for them, says Keith Gumbinger, vice president of mortgage research firm HSH Associates in Butler, N.J. The average rate on 30-year conforming mortgages tracked by HSH was 5.30% today, down from 5.57% a week ago. Some mortgage brokers are quoting rates below 5%.
Now, this isn't feasible for everyone — it requires two things in short supply these days: a decent credit score and equity in your house. But if you've got 'em, look into refinancing. It could be a good side effect to this ailing economy.