There are signs the recession is ebbing and recovery is on the way. The $787 billion stimulus package aimed at injecting cash to the economy plus the conglomeration of smart and immediate government actions such as maintaining the Fed Funds rate between 0 and 0.25 percent.. The stock market is on the rise and is now over the 8,000 mark, the housing industry is also on the upward trend with the construction of homes and apartments jumped by 22.2 percent in February and the general consumer index is going positive.

With all these economic indicators pointing upward there is one question that any homeowner must answer. Is it time to refinance my mortgage? The housing industry after all is pinpointed by financial experts as the root cause of the current economic woes. Mortgage rates have all suddenly become unaffordable to a majority of homeowners and a large number of them are currently threatened by foreclosures. Refinancing can cancel the foreclosure notice and can give you thousands in savings with the lower mortgage rates currently being offered by lenders.

However with the election of President Barack Obama the government has made a lot of economically sensible decisions which lead to one of the lowest mortgage rates in US history. According to Freddie Mac, their weekly survey showed that the average rate on a 30 year mortgage increase to 4.87 percent from an all time low of 4.78 percent. Mean while Mortgage Bankers Association also revealed a similar trend by reporting that a 30 year fixed mortgage had increased to 4.73 percent from 4.61 percent.

Although the mortgage rate has increased it is still below 5 percent and most financial experts predict it will stay at this level. This low mortgage rate is attributed to a series of government actions such as buying back trillions of mortgage back securities and treasuries, providing $5 billion as incentives to mortgage industry who can modify their loans to lower rates and providing an $8,000 credit for first time home buyers as part of the stimulus package.

The low mortgage rates have enticed a lot of homeowners to apply for refinancing. In fact the Mortgage Bankers Association's index for refinance increased by 3.2 percent and Fannie Mae declared that it refinanced $77 billion worth of loans last month March. So the answer to the question of whether it is time to refinance or not is “now” is the time. With the mortgage rate hitting low and appears to be on the upward trend, the current rate seems to be a very good reason to refinance. Even President Barack Obama himself indicated that this is a good time to do so by declaring "we are at a time where people can really take advantage of this". This is in reference to an estimated 9 million homeowners out of which 12 percent are due to foreclosure and haven't availed of refinancing yet.

So there you go, even the US president himself is prodding you, now is the time. The waiting is over and now is the time to start doing your share of uplifting the economy by refinancing your mortgage now if it's makes financial sense for you to do so.