[AnimalMuppet]

In addition to what jeffbee said, because when the rates go down, not only can you refinance, but also the value of the house goes up. (Because the demand side of the supply/demand curve is set by monthly payments, not by total value, and when interest rates go down, the same monthly payments can fund a higher face value loan.) So you get the lower payments and capital appreciation.

By the way, the same "increase of face value" is true of buying long bonds at peak interest rates.

Of course, the trick is knowing when the peak is. But if the Fed's actions have their intended effect, we may be somewhat close currently. (Note well: I am not an investment advisor! Follow at your own risk.)