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Mortgage rates fell again to another record low in this week's rate survey, with the 30-year fixed averaging 4.57 percent. Rates haven't been this low since the mid-1950s. This is the fourth week in a row in which the 30-year fixed either tied or set a record low.
A plurality of Rate Trend Index voters predict that mortgage rates will remain relatively unchanged over the next week. I am one of the misguided souls who predict an increase in rates. Good news for you: I've been right 15 times in the last 52 weeks. So if I say rates are going up, they're almost surely going down.
I doubt it. I said the same thing when people said we would drop to 4.5 percent. "It'll never happen," I said.
Will we see 3%?
I don't think the Fed's Treasury-buying program has anything to do with this week's rate drop. I'm guessing that this drop is a reaction to the lousy employment report from last week, coupled with recent stock market losses and fears that the U.S. economy's troubles could lead to a global double-dip recession.
How much of this decrease is due to the Fed purchasing 10 year notes? Is this going to continue to drive down rates, in your opinion?