Have mortgage rates hit there bottom?

Yesterday mortgage rates fell off a cliff again. They are back in the 4.375% - 4.5% range, down from 5.25%. This large drop was due to the government interaction in the bond the market. A story posted on Marketwatch.com today hints at the theory that mortgage rates might not go any lower then they are today.

“It's hard to make the case for a quantum leap below 5% given
everything we are seeing now," said Nancy Vanden Houten, an economist at Stone
& McCarthy Research Associates. She anticipates rates could hover between 5%
and 5.25% for a while, she said in an interview Tuesday. "I think it's more or
less found a bottom."

Nancy Vanden Houten might be right on this. How much lower can they really go? I’m not sure and I don’t think anyone really does. If you are in the market for a new home or looking to refinance I would suggest that in the next month you think about taking action. One thing is for sure, someday rates will go up and it will be a long time/if ever before they dip below 5% again.

As always please contact me if you have any questions!

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