The following was a blog I wrote late last week.

Investors are looking for higher mortgage rates to compensate for long-term government debt. And they got it as Freddie Mac said that average rates INCREASED on a 30 year fixed. Although just by .09 %, this jump can be a a telltale sign of things to come.

Still mortgage rates are below 5% (to qualified buyers) but with the yield of the Treasury 10-year note reaching it's highest level since November, there is worry that those yields could drive mortgage rates even higher as well as the cost of borrowing for businesses. This in turn can slow the nation's emergence out of the housing crisis and recession.

However, there is a solution. Buy that home or refinance ASAP. The timing is right. But one cannot wait for the price of homes to continue to diminish but instead, take advantage of the price of money today. In the long run, the lower rates compensate for any reduction in home prices. For every 1% raise in mortgage rates, 8% of buyers are out of the market. And even with the generous Federal first-time homebuyers credit of $8,000., it will be eaten up by the mortgage increase whether instantaneously or over the first few years of the term of the mortgage.

For homesellers, look at all the offers you receive and seriously consider them. As the mortgage rates rise, the ability to sell your home for the price YOU THINK it is worth, will diminish. Remember, although you set the asking price and your expectation of selling price, the buyer determines the value of your home. As rates rise, less buyers will be out there, while more sellers will, and therefore, and quoting it in simple economic terms, value goes down. Your home is a house and consider a product. If your product does not sell, it is because of 2 reasons, merchandising and marketing, and price plays a large part of that entire equation.

So both buyer and seller, DON'T MISS THE BOAT AND DROWN IN THE ECONOMIC WHIRLPOOL. BUY AND SELL NOW, AND CALM THOSE TURBULENT WATERS!

When they will drop? How about pretty much continuously between 2006 and 2009? Rates are now going back up. They may drop back again a bit, but don't count on it. If you're waiting for the absolutely lowest rates you can get...you've probably already waited too long.

My take is quit trying to time the market. It's almost impossible to win at that game. Current rates are fantastic from any historical perspective - even though they've just gone up a bit.

Lock in now, and take comfort in how smart you'll look two years from now when they've gone back up 2% (or more?).

rates have dropped to levels not seen since WWII. Ask rather when they will go up and by how much.