The slower the economy gets, due mostly to the credit crunch and the mortgage crisis, the better the FHA refinance rates will be for qualified home owners. This is because the government will try and stimulate the economy in times of financial duress. If people do not get a little bit of bread and butter served to their financial plates by the government, even if in the form of lower rates via FHA refinance, than they will stop buying or doing anything economically beneficial until consumer confidence is peaking again. This is why the government steps in and lowers the FHA refinance rates. It encourages people to take out new, lower interest rate loans. They can experience a lower monthly payment. They can get out of debt faster and own more of their home quicker. There is a plethora of great ways that the feds lower the rates of FHA refinance helps to ease the burdened financial situation of the economy. One can only hope that the lower the FHA refinance gets, that the rates will also help in part, to bring us out of this money drought and move on as a nation to prosperity.
