Waiting for the government to lower your rates, better think again!

If you are waiting for the FED to continue lowering rates before you for your refinance, you may have missed your chance to lock into a fixed mortgage for under six percent.

Interest rates are moving up and have steadily moved up, despite the Federal Reserve and Ben Bernanke lowering the fed funds rate. How is this possible? Well, the first thing we must understand is that the fed funds has nothing to do with long term daily.

Since the FED last announced their rate cut, mortgage rates have moved up because of a strong fear that the banking industry is still facing a credit problem and there are still strong signs of inflation in the economy.

So as we head into 2008, if you are trying to find the lowest mortgage rates to refinance or purchase your next home, it may make sense to lock in sooner than later as the market is driving up interest rates. If you are going to wait, keep an eye on the stock and bond market to help guide you with where rates are going, but keep in mind no one can predict with 100% certainty whether rates will fall down below 6% anytime soon.