§ Average US mortgage rates have fallen to their lower levels since the 1940s: 4.8%. This is rare. The only other period in which rates were below 5% was WWII to 1952.
§ These rates won’t last much longer as the Federal Reserve’s $1.25 trillion mortgage-based security investment program is set to expire in March.
§ Some analysts forecast 6% rates by April, 2010. Using an online mortgage calculator, the monthly mortgage payment would increase from $2,187 to $2,500 or $313 (14.3%). This assumes a $417,000 loan (the maximum conforming loan).
§ Currently, 60% of homeowners have mortgage rates greater than 4.8%
§ Mortgage applications to purchase houses are at their lowest level in 12 years.
The Bottom Line: Now might be the time to invest in a new mortgage or refinance an existing one.
Source: NYT, Bankrate.com