With home-loan rates at historically low levels, mortgage experts have a message for consumers wondering whether to refinance or buy a home: Do it now. Don't be greedy.

        Those experts expect that mortgage rates won't drop much more and say consumers who wait are taking a big gamble and could even wind up with higher rates.

        Even with the Federal Reserve's unexpected move Wednesday to cut short-term rates by a half-percentage point, mortgage rates in recent weeks have inched higher.

        The Fed, which has cut rates four times since January, is aggressively lowering rates to help boost a weak economy. Its hope: Revive the stock market, boost corporate profits and spur consumer spending on such things as homes and cars.

        But because investors who buy and sell mortgages anticipate the Fed's move, they price-in rate cuts before the Fed acts. That means rates have about hit bottom, experts say.

        “Mortgage rates declined because the Fed was doing nothing to address accelerating economic weakness,” said Keith Gumbinger, vice president at HSH Associates. “This is no longer the case. An active Fed means the fall has likely ended.”

        In fact, since the Fed began cutting rates in January, mortgage rates have been volatile, rising and falling weekly, rather than just falling.

        The average 30-year fixed rate this week was 7.25 percent on a $100,000 mortgage, according to the Cincinnati Area Board of Realtors. That rate was as high as 7.44 percent Jan. 1 and as low as 7.14 percent March 19.

        Still, rates are at their lowest level in years. The average local rate compares with 8.27 percent a year ago.

        But even with mortgage rates falling for the most part since January 2000, some of the Tristate's mortgage lenders say thousands of homeowners have not refinanced, and potential homeowners are now looking to buy.

        Sandy Robertson, national sales manager of mortgages at Fifth Third, cited two reasons for the hesitation:

        • Many people still think that their new mortgage has to be at least 2 percentage points below the existing mortgage to recoup closing costs from refinancing. But he said many lenders offer mortgages with no- or low-cost refinancing, where borrowers can pay certain closing costs upfront or finance them in the new mortgage at a higher rate.

        • Consumers don't regularly manage their mortgage. He said people regularly check quarterly stock statements but might not look at a mortgage for years.

        Mr. Gumbinger offered these recommendations for consumers looking to refinance or buy homes.

        • Don't wait. Mortgage rates are within shouting distance of 33-year lows, but continued declines don't appear likely.

        • Don't gamble with rates. Lock in.

        • Consider a no-cost refinance. If you think that mortgage rates will be lower later, but are still compelled to refinance, shop for a no-cost mortgage, where you trade paying points and fees for a slightly higher-than-market rate.

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