Will low mortgage rates stay around awhile?

From a business and economic perspective, I believe so. This my personal opinion, but I'm sure there is data to support my opinion. There needs to be some catalyst to fuel economic growth and and stabilize the housing market. Today's rate is 5.1% for a 30-year fixed. Some rates are sub 5%. These historically low rates are attracting refinance and purchase interest.

The Feds plan on spending $500 billion to purchase mortgage-back securities, aimed to lower the price of mortgages and make more loans availably. Lower interest rates is one of many ways to make home purchase more affortable. I read a real estate article stating a 1% drop in rates amounts to 500,000 to 700,000 more home sales. Lower interest rates makes sense, as this makes it possible to clear inventory, as home prices drop and affordability increases.

The sub-prime demise triggered a shift in the housing market. Perhaps, lower interest rates will convince buyers to purchase and investors to buy income properties. To combat, negative news, consumer confidence, raising unemployment, credit hurdles, there is much to be gained by keeping rates low. Makes sense to me. Let see how rates play out in the coming months. This is my opinion per my earlier disclaimer. I guess time will tell if rates continue to stay at 5% or lower.