What will mortgage rates do in a slowing economy?

[Meadowlark]

I am right on the cusp of where it would make sense to refinance my mortgage. I already have a fixed 30 year at about 6 percent. If rates continue their decline it might make some sense to refi this baby and save around $100 per month or more. I guess I have two questions that relate to the mortgage market.How will a recession or even a slowing economy effect the mortgage rates?How does a reduction in the fed funds rate effect mortgage rates? I understand that mortgage rates follow more closely the 10 year treasury rate.

[jake g]

Go up DUHH!!!!!!!

[Anthony W]

They will be cut further to try and stimulate the housing economy. It's like a slow chirstmas!

[Timmay]

wow a fixed rate a 6% is amazing btw. you should wait to refinance until the economy gets even worse, the interest rates go down. the Fed will keep cutting them as we head further into this inevitable recession in order to stimulate buyers to buy more homes.