Refinance Rates Falling with Mortgage Rates

Many Americans are very serious about refinancing their current mortgage to a lower rate.  With the government doing everything in their power, including defacing the United States currency, to lower mortgage rates, now may be the best time in history to refinance your home.  Average mortgage rates are hovering around 4.8% and there is extreme pessimism in the housing industry.  While there are a few analysts who believe the worst is over for the housing industry, there is still a majority who believes the worst has yet to come.

If you have been smart with your money and saved for a “rainy day” you may get the opportunity of a lifetime this year.  That rainy day may very well be today.  Every housing market documented in the Case/Shiller Housing Index has seen steep declines since the housing top of June 2006.  There are some markets that are down well over 40% including Phoenix, Detroit, Los Angeles and Miami.  Even though the entire country has yet to see steep declines, it is the overall sentiment of the media that the housing market is dead.

With this being the sentiment, very people people are willing to buy a new home because they fear the value dropping immediately.  With new home sales being stagnant, there is a great deal of room for those who want to refinance, which in turn could cause refinance rates to decrease even more.  When President Obama and Ben Bernanke first announced the trillion purchase of MBS many analysts feared that those who did not get in early would not be able to find funding for their loan.  This is just not the case as the housing market continues to struggle great.

Take a chance and apply for that refinance you have always wanted.  You never know, that rainy day you always worried about might be the most opportunistic day of your life which is an extremely low refinance rate.

For the first seven months of this blog I have opened up the forum to a few readers who had the desire to post their feelings through articles.  After realizing how much passion some of the readers have for the current economic crisis and the mortgage industry, I am going to allow YOU, the reader, to send me articles to post.  The only requirement I demand is that you have PASSION for what you write and it must involve the housing industry.  I would actually prefer you to be strongly opinionated as that is the point of this blog.  If you are interested in writing every once in awhile or every single day please email me at jwojdylo@subprimeblogger.com.  I look forward to posting your articles and getting engaged with the reader.

This does not mean that I will stop producing articles.  As many of you know, I am quite opinionated and I will make sure that my beliefs and opinions are still represented through this blog.