30 year fixed mortgage rates this week were 3.91% (.8 fees/pts) according to Freddie Mac's Mortgage market Survey, tying the lowest they have been in the history of the survey. There is little pressure for increases as European debt fears boost the attractiveness of US bonds and the fed's pledge to keep short term rates low for an extended period. Mortgage rates averaged 4.5% over 2011 according to the survey. Mortgage rate predictions for 2012 vary, but generally fall in the 4%-4.75% range. Still very attractive to buyers. I think banks may relax credit standards some in 2012 as "good borrowers" may have missed a payment or two during the weak economy.