If unemployment comes down and economy improves, is that actually bad for mortgage rates?

Before making a decision take a look at your loan docs to see what index and margin you have with your current loan. You may adjust well below current rates making it worth it to hold off for a while. If rates start trending significantly upwards then you can look to refi.

Unemployment will definitely come down and the economy will improve. Mortgage rates also will go up when the indicators say the economy is improving. Experts however are all over the place as to when this will happen. The consensus seems to indicate the end of the year as the time frame for real improvement in jobs and other major factors that influence our economy. In my opinion rates will remain at historic lows at least for the next 6 to 8 months.Your current adjustable rate mortgage may not increase at all during the next year because treasury indexes are quite low and expected to stay that way for a while. Currently ARM's are running about 1/2 to 5/8% lower than a 30 year fixed loan. I would call your current lender and ask them directly where they see rates going at the time of your next adjustment. They have no reason to not give you this information and they may even offer you a great deal to fix your current rate.

Steve, It is unavoidable as there is no place, but to go up. With the rates currently below 5%, I would definitely look in to refinancing. Feel free to call or email me. Sean WheelanPersonal Mortgage Consultantswheelan@tmgltd.biz401-965-9384 cell