This is a question I get asked everyday, dozens of times.  The short answer is, I don’t know for sure, no one does.   With the current US economy in shambles, foreclosures at their highest rates in decades and unemployment at near 10%, no one can be sure of where rates are headed- lower, higher or somewhere in between.

I would like to offer some advice and history as to what rates have done in the past few years and hopefully with this information you can make and educated decision about what to do for your family and situation.

Not since May of this year have we seen available 4.5% 30 yr fixed available for VA refinancing.  That being said, it was on the rate sheets last Friday the 10th of September.  Because of the volatility of the market it isn’t available today- that is how quickly the markets turn and rates move.  I have seen rates repost differently 4 times in the same day.  What does it all mean?  It means, if you have a VA loan right now, then it is time to refinance if you haven’t already- if it makes sense.  Anytime your refinance there are costs- prepaid taxes and insurance, title insurance, the payoff to your current mortgage company and that is fine- so long as the overall savings outweigh the costs involved.

Last year in October 2008 and 2007 rates were great and during the early fall.  They tend to move up towards the end of the year but you can expect 4.75% to be available for refinances in October 2009, so long as the market remains steady and nothing out of the ordinary happens.  Do not delay the process though if you are considering a VA refinance for October.  It is time now to get your paperwork into processing because with the low rates there will be a backlog of many people trying to get in for a refinance in October.  So plan ahead and get moving on it now.  Finally, that really is the trouble with rates today, is no one can explain why they do what they do, and with America in a really difficult financial position right now the markets are just plain crazy.