I get a lot of questions from folks wondering if the rates can go lower than they are now. Here is a very interesting chart that tracks the mortgage bonds for the past year. (Note: The bond chart moves opposite the interest rates: i.e. when the chart moves higher, interest rates generally move lower)

You can see from the chart that the mortgage bonds have stalled out at the same place they did last year. This is significant. We don’t know when the interest rates will jump up but it does not appear that they will go significantly lower from where they are today. If you know of anyone that is considering financing their home in the next few months they would do well to get things started soon to get the best terms.

Most fixed rates are between 3.5% and 4.5% depending on the length of the term (15yr to 30yrs) and the credit of the borrower. Let me know if you have questions about any of this.