Essentially quantitative easing is adding extra money into the streets to stimulate the economy. The money put in will optimistically allow more consumers buy merchandise and services. Thus, the companies will produce more and hire more workers leading to boost in employment rate overall.Generally predicted QE II is finally revealed. The Fed will be buying more mortgage backed securities and government papers. The amount of the Fed money outlay will depend on many factors and the eventual outlay and its effects will be seen in coming months. The Fed decides on short term interest rates, such as the federal funds rate which is the rate banks charge each other for overnight funds. But long term interest rates such as the fixed rate for fifteen to thirty year mortgages are determined by market participants.Certainly the Fed could influence these rates by actively involving in these markets. This will create a positive demand for such securities that will boost up the price and move down the rate of return. Positively the result would be that mortgage rates come down more increasing refinance applications and helping the housing market.Initial responses were that the mortgage rates have actually increased. The basic clarification for this behavior may be that the participants was anticipating quantitative easing by the Federal Reserve and it seems that they were awaiting more than what was committed. In addition analysts might believe that the Federal Reserve is signalling to boost the economy, but they might be reluctant to open the money gates easily. Hence there are wide opinions as to how much ultimately the Federal Reserve will spend out. Regrettably, it seems that billions of dollars barely leave a dent in the current economy; it could be time to be talking in trillions.Immediate worry could be the inflationary side of quantitative easing. That could force the mortgage rates up. This will be clear in the advancing months and years.Based on your risk attitude, you might determine what you are going to do with refinancing your mortgage. You may decide that you could do with some certainty in your life with a fixed rate home loan refinance. Alternatively, you may be loving it and planning to find out how low down the rates may move before you deem it to be a worthy rate to refinance. There are numerous mortgage instruments in the market that you might like to have a search for the moment. You may further desire to pinpoint the most competitive mortgage loan providers in your state well ahead of an expected refinance undertaking.