Fed cuts rates to near zero... What will that mean?

[Brett Lee]

Last week I shopped refi rates on non owner occupied investment mortgage. After some searching I was able to get rate of 3.625%. However I did not lock it and rates have since increased.

Today I see fed will cut rates to near zero. Will that directly affect refi rates? I'm guessing yes... But hoping to hear to see what you all think. Also, If you get a great rate on refinances the next couple days please let me know what you get. Thanks!!👍👍

[Salvatore Lentini]

At the moment demand for refi is through the roof.  Banks have no incentive to lower rates to drive more traffic.  My guess is, if this US partial shutdown lasts for more than a few weeks and if the economy gets flattened, once the initial refi rush settles down, banks will need to fill the pipeline again and you'll see rates drop again.  I would also think that while the refi market may be hot, purchases have got to be down.  I can't imagine too many home buyers were out this weekend shopping.