Mortgage rates could dip before election

Q: What economic indicators should I be watching when trying to decide when to refinance my mortgage or home equity line of credit?

A: I'd just watch the price of the mortgages themselves. Right now, we're waiting for interest rates to drop further. But interest rates have become rather volatile. For mortgage interest rates to drop, the interest-rate spread between what banks pay for funds and what you, as a homeowner, will pay the bank must narrow. (With so much uncertainty in the financial markets, the increased risk is being priced into the mortgages, which is why interest rates haven't dropped much.)

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