Time to Refinance

Treasury Moves Lower Interest Rates

It may only be temporary, and it doesn't necessarily signal that the housing market's troubles are over, but the government's seizure of Freddie Mac and Fannie Mae has had at least one immediate, salutary effect: lower interest rates.

Since just last week, fixed 30-year rates have dropped almost a half point, from 6 3/8% to 5 7/8%. Fifteen year rates have experienced a similar size drop, to around 5 3/8% (the latter traditionally are viewed as safer loans and therefore carry lower rates).

If your mortgage rate is significantly above those numbers, you may want to reconsider refinancing. If you are a prospective Buyer, homes just became a little more affordable. And if you are a Seller, you'd expect that Buyers' wallets may be open just a little bit wider.