Mortgage Rates Have Dropped

Mortgage Rates have been updated.

They have dropped because Secretary of the Treasury Paulson has decided to start buying mortgage backed securities. The idea is that they will increase the likelihood that rates will drop further.

Will they drop?
Will anyone else want to buy mortgage backed securities?
How long will the rates stay low?
How low will they go?
How many people will take advantage of the lower rates and refinance? How many people have enough equity to be able to refinance?
How many people will take advantage of the rates and go buy a new house?

I don't know the answer to any of these questions, so my recommendation is to take the savings and lock in all loans......

Tom Vanderwell