This week mortgage rates dropped to nearly the lowest levels of the last two years, shortly after making a big one week jump last week. According to the Federal Reserve, inflation is running lower than expected, which means rates might continue to fall. 

After a meeting of the Federal Open Market Committee yesterday, they voted to leave the Federal Funds Rate at near 0 percent, extending the current fiscal policy by at least six weeks. As some markets remain slow despite steady growth, especially in jobs, the Fed Funds Rate is expected to remain near 0 percent for as long as needed.

What this means for home buyers is that interest rates are low, and buying power is increased. As always, VA and FHA mortgage rates can be significantly lower than conventional loan rates, with some lenders quoting rates as low as the mid-2 percent range. 

Homeowners looking to refinance should apply now, as today’s low rates mean millions of homeowners are “in the money” according The Mortgage Reports and the government. Typically, the definition of “in the money” is having a loan balance over $50,000, having over 10 years left on your mortgage and having a mortgage rate 1.5 percent above today’s rates.

For homeowners with mortgages currently backed by the FHA, the FHA Streamline Refinance program is one of the best ways to quickly lower your mortgage rate and monthly payment. With low FHA mortgage rates at loanDepot, you could potentially be saving hundreds each month, in addition to dramatically lowering your total interest paid.

There are also options for no cost FHA Streamline Refinancing, which can bundle the closing costs into the loan by adjusting the mortgage rate. If it has been months since you last looked into refinancing your home, now is the time to act. Experts at lenders like loanDepot can help you figure out which loan program is best for you.