How is current fed rate effecting fixed rate mortgages?

[Jugernot]

Haven't seen much of a change in fixed rate mortgages in the last little bit, though from what I understand the rates cuts really only lower ARM loans and CC percentages, is that correct?

I'm getting ready to refi at 5.75% for a 30yr fixed and was curious what rate cuts have historically done to fixed rate % rates? Seems to me that they can only go down, but it may take time...

Historically, when do fixed rates start coming down due to fed rate cuts?

Jugs

 

[daveshel]

It doesn't seem to be bringing mortgage rates down.

 

[bctbct]

Most morgage rates reached their lows a few weeks ago but have bounced back.

 

[FoBoT]

http://www.frbsf.org/education.../drecon/2002/0206.html

 

[amdskip]

Is 6.25 worth refinancing? I've looked at the calculators but I don't understand the points thing.

 

[bctbct]

Originally posted by: amdskip
Is 6.25 worth refinancing? I've looked at the calculators but I don't understand the points thing.

If it says 5.75/1

That means you pay 1% of the loan as a fee to get that rate. You are "buying down" the rate.

Best rate I could find for 30 year conforming is 5.62