30 Year Fixed Mortgage Rates - Will Interest Rates Go Under 5%?

The 30 year fixed mortgage rates chart shows that mortgage rates have been in a range from 5% to 5.5% for the last few months.  It seems every single time interest rates get to one end of the range, they reverse ground and head all the way to the opposite end.  Part of this is due to the government interacting and part of it is the overall market trying to figure out where rates should be.

If we do see overall rates break below the 5% barrier it will get very interesting for mortgage lenders.  There probably is not a backlog of mortgage applications currently but if rates do drop that much everyone and their sister will be attempting to refinance or buy their first home.  It seems like 5% is the psychological barrier that just needs to be broken to the downside before we see the housing market start to take off again.

The economy is struggling as a whole but things look to be getting better as 30 year fixed mortgage rates make their way lower.  If home prices find a way to bottom and start appreciating then we might just turn the corner.  The one good thing about the current economy is that businesses are willing to do whatever it takes to get your business.  If you are a first time customer, many mortgage lenders are willing to offer some great incentives to get you to sign on the dotted line.  Make sure to take advantage of this while it lasts.