Asked on 01 Nov 2019
Will be repricing my fixed home loan soon and would like to weigh my options.
Based on what I've been reading, mortgage rates should go down assuming the Fed were to continue to cut rates in the next few quarters.
However the recent FOMC meeting on Aug 22 state that the rate cut was more of a “recalibration”. That means future rate cuts may or may not be in the works just yet.
When prevailing interest rates fall, banks are less likely to lower the interest rates on their loans as quickly as they would raise them when prevailing interest rates go up, given the negative impact the former would have on their net interest margins.
My advice, if your loan rate is more than 2.5%, I would suggest to refinance asap.
If your current rate is around 2%, you can consider to wait and see.