Although current mortgage rates are increasing, a 30-year fixed-rate mortgage is still available below the 5% threshold. The same 30-year fixed-rate mortgage was available between 4.5% and 4.625% less than two weeks ago. Since the end of November, mortgage rates began to rise rather steadily. However, even though analysts expect mortgage rates to remain relatively low through the first quarter of 2010, it all depends on one's interpretation of "low."

Mortgage rates change daily, sometimes several times throughout the day. A major factor in keeping current mortgage rates at or near historic lows for so long has been the Treasury Department's pledge to purchase the massive amount of mortgage-backed securities in the amount of $1.25 trillion. Once this allotment has been met, economists predict mortgage rates will skyrocket to near 6% or beyond.

With the continued availability of the $8,000 first-time homebuyer tax credit and the newly implemented $6,500 "move up" homebuyer tax credit, mortgage application activity has continued to increase since the beginning of December. In addition, unemployment numbers released by the federal government were significantly less than originally predicted. If the unemployment numbers continue with this downward trend, and many believe it will, the economy is expected to stabilize even further. When this happens, current mortgage rates will increase and remain higher for some time. In the end, an improved economy equates to higher mortgage rates. The time to either purchase or refinance is now.

-Robert Hyder