You gambled and lost. You just knew interest rates were going lower. You got greedy. You wanted to wait. And you were left stranded on the pier as the ship left the dock. You thought the ship would turn around and come pick you up. But it just got further and further away until it disappeared over the horizon. So, you sit on your suitcase and wait. And wait.
Refinancing for a better rate comes with its pitfalls. And one of the worst things you can do is listen to newscasts talking about the Fed lowering rates and advertisers who should know better [and maybe they do] talking about how those rates are somehow tied to mortgage rates. They are not. And for the sake of a cup of coffee a day, you decided to ignore the advice of your mortgage professional. And now you will never have the opportunity back that you lost 5 months ago.
If refinancing for other purposes is your motive. You should book your cruise right now. It is getting costlier by the day. Mortgage Backed Securities, the driving force behind mortgage rates, have been tanking as an investment. And that means higher rates. We have not hit 7 percent yet for zero point mortgages with 30 year terms, but we're closer to 7 than to 6. What to do? Move quickly when you've made your decision and lock your rate to remove uncertainty. That is what to do when the boat has left the dock.