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Here’s a great quote from an expert on the future of mortgage rates:

If you are considering refinancing or purchasing a home, do it now. Do not try to time the market. Most people that do, won’t catch the bottom. Currently, you can lock in rates on a 30 year fixed below 6%...I assure you this-next year at this time, they will be higher than they are today.

That was posted on the Mortgage News Daily website in February, 2008. Rates are lower now than they were then by almost 1 full per cent! The moral of this story is no one knows where mortgage rates are headed. There are some indications that they may be going up. The Federal Government is spending (borrowing) money as it has never done before. This borrowing puts upward pressure on credit markets and rates. According to a report on Bloomberg.com Federal Reserve Chairman Ben Bernanke’s efforts to bring down borrowing costs to revive the housing market and help the economy are stalling. A former research director and the Federal Reserve says “housing is not going to be the engine to get us out of this recession”. Robert Eisenbeis says “they’ve squeezed a lemon and now they’re trying to squeeze some more, but you can only get so much juice out of a lemon”. It may be the Fed doesn’t see the possibility of lowing rates further as an answer to the housing crises.

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