Mortgage levels are at the lowest since the 1940's--consider-- The low rates are due, in part, to the Federal Reserve’s program of buying 1.25 trillion in mortgage-backed securities, which is scheduled to conclude in March, 2010, with little likelihood of renewal (according to Fed Leaders). If rates increase to near 6% in the Spring, a $300,000 mortgage would cost $225.00 more a month than current levels.

Hi Heathcliff,

This should help you to understand how and why rates move:
http://docs.Steven-Anthony.com/SAR-HowMortgageRatesAreDeterm…

Best, Steve

Lol, Wallace!

I can't help wondering if you consider Warren Buffet (who is a die-hard supporter of President Obama's economic policies...even though he is a Republican) one of Obama's " merry band of socialist nit wits"?

Try to pay attention to what has happend over the last year...even if it means stepping out of the blinders of the right-wing ideological tripe...which got us into the mess we are in...including the complete bankruptcy of our financial system, and the crash of the stock market...all of which took place during George Bush's term in office.

The SIMPLE answer to a very complex reality is: MR. OBAMA and his merry band of socialist nit wits, who take our tax money and spend, spend, spend! Treasury notes and dollar bills are essentially IOU's that have to be repaid! When you repay an IOU with another IOU the "lender", China for example is going to demand a higher rate of return to account for the fact that they are gambling they'll ever be repaid! Interest rates moved upwards over 100 basis points in the last 30 days alone! If you are interested in a "low" rate BUY NOW!

Interest rates rise and fall daily, sometimes many times a day. When they say rates are at historic lows they mean it. When I first bought a home in the 80's, the interest rate on the home loan was 18%...see what I mean.

Either you are in to buy a house or you are not. Rates won't even matter until a buyer is pre-approved. Unless a buyer is pre-approved for a loan in today's market, it wouldn't matter if rates dropped to zero for that buyer, because without a pre-approval you cannot lock your loan rate. Without pre-approval you will lose that low rate.

If anyone plans on riding the fence and waiting for better rates, I would suggest not doing so. You do so at your own peril and an eighth of a percent either way shouldn't get in your way if you are serious. And if an eighth of a point breaks you're deal, you might want to reconsider buying at this time.

Woulda, coulda, shoulda or guessing the rates is always a gamble.

A low interest rate in the hand is better than two in the bush...or somethig like that. You get the point. Here are some figures for the '80's most would find enlightening...for me, I lived through them. We could be headed back. If I can assist anyone with a pre-approval and/or home purchase, I am here to help and it's what I do for a living.

Prime Rate
1981: 20.5%
2009: 3.25% (Current)

Inflation
1980: 14.8%
2008: 0% (December)

Unemployment Rate
1982: 10.8%
2008: 7.2% (December)

30-Year Mortgage Rate
1981: 18.5%
2009: 4.96% (Current)

Real Gas Price (2008 dollars)
1981: $3.45 per gallon
2009: $1.82 (Current)

Call if I can help you. George 209-649-8114