Current Mortgage Rates Temporarily Fall Back Below 5%

Although mortgage rate analysts are forecasting a drastic increase in current mortgage rates in the very near future - and we have already witnessed a prelude - current mortgage rates are below 5%, at least for today. Rates have been inching higher in recent weeks, so the recent decline in current mortgage rates is a welcome change for fence sitters debating whether or not to purchase a home or refinance their existing mortgage loan.

The price of mortgage-backed securities, which ultimately guide the direction of current mortgage rates, took a 180 degree turn last week after more than six consecutive weeks of declines in value, ultimately helping current mortgage rates to lower, somewhat, once again. Many analysts believe when the Federal Reserve completes it's commitment to purchase $1.25 trillion in mortgage-backed securities, current mortgage rates will increase dramatically. Most analysts believe current mortgage rates will head back to the 6% range, with some prominent analysts predicting the rate on a 30-year fixed-rate mortgage will reach 8% in 2010.