I have heard that the Fed is likely to drop interest rates again given the weak housing reports. Is this true? And if so, should I wait to re-finance until the 18th, when rates will be lower?

 

 

 

WAIT!  WAIT!  WAIT!

Remember, even if the Fed decides to drop just a quarter of a point, the effect is residual.  It has to trickle throught the many layers of hands that provide credit to you the consumer.  It may be a week or it may be a month.  Just be patient.  Risk vs. Reward is the point of this reply.  The risk of waiting has a substantial payoff in Reward if we see what everyone in the financial sector is speculating!

Thanks and good luck!

 

how long does it typically take for a rate drop to trickle down and show up in the rate i would pay?  when do i know it is time to jump in and refinance?  i'm also waiting to buy another investment property.  when should i begin looking?  is now the right time, or should i wait another 6-12 months?

I suggest starting the process now, the 18th is not that far away. Not to mention that the rates dropping may not affect you depending on the type of loan you will need. The rates just dropped but it only affected conforming loans, so it did not affect many people in my area whom all would need Jumbo loans. You would not have to lock a rate today or the 18th for that matter. You will need to gather documentation and that can be done during the time between now and your D-Day of the 18th. Getting the process started and seeing what your options are once you are working with a lender/broker may be worth it more than the rates dropping. Some avenues of financing can make the unchanging rate irrelevant. Not to mention that the rates now are not "bad" or "high", they are just not as attractive as what the consumer has become accustomed to in the recent market. We are still in a good market for all transactions. Waiting may save you an 1/8th of a point, but property valuations could counter that even quicker. Go for it!

The Federal Reserve cut the Fed Funds Rate by 0.500 percent today.