According to Freddie's weekly mortgage survey, rates are at 38 year lows, averaging 4.71%. This is good news for homebuyers today, although not everyone will obtain that rate. Many will get something lower (remember the 4.71 is an average). However, as we have said in prior posts, this may not last forever, especially as the Fed winds down it's program of purchasing mortgage backed securities. Further, as reported in the Wall Street Journal, if the Fed's expanding balance sheet creates "froth" in the markets, the Fed may need to raise rates more aggressively. Hard stuff to forecast but but we know a couple of things. One, rates are historically really, really low, and second, the probability of rate increases in the coming years is greater than one. If you think housing prices are in line with your expectations, you might want to consider a purchase fairly soon.

WSJ source article click here