This is a question I am asked at least weekly, and my answer is always the same: With rates very near all time lows, the potential for further rate improvement is limited at best. With the fiscal cliff as well as election looming, probability is that rates either go up, or, best case, stay near where they’re at now.
It’s also important to consider that every day you sit at a higher rate, considering a refinance, you’re wasting money on the existing loan. Some folks get “paralysis by analysis” and end up doing nothing when they could have improved their mortgages considerably.
Talk to a mortgage professional, see how much you can save now, and decide if the benefits justify the costs (if there are any costs). Also consider a true no cost refinance in which the lender pays your closing costs for you. I do these routinely. If rates drop again, there’s always the potential to further improve my clients' loans!
I agree with Ted, at best rates are likely to be pretty much the same as they are now. Romney has stated he is not in favor of the actions by the FED that brought down rates slightly lower in the past couple months and he will likely remove Ben Bernanke as head of the Fed, so that could push rates up. On the other hand, the “fiscal cliff” could bring a lot of uncertainty which is normally good for mortgage bonds as a less risky place for investors to park their money and helps interest rates. My thought is that now is the time if it makes sense don’t sit on the fence.