When Do You Refinance Loans or Mortgages Amid Potential Rate Cuts? Timing Is Key

Despite uncertainty around the Fed's rate cut timeline, over 74% of traders anticipate a rate cut by September. Lower rates could stimulate borrowing, benefiting those seeking loans or mortgages. However, savings accounts and CDs may see lower returns. When cuts occur, closely watch rates to determine when to refinance existing loans or mortgages. A quarter-point cut may not be enough; wait for larger cuts. Cuts could impact budgets that rely on savings and investment income. Review spending if that income may decrease with lower rates.