Interest Rate Outlook

Most people's home purchase revolves around how much their payment will be monthly. The payment that you pay heavily revolves around the interest rate that you qualify for at a bank. Most people right now are thinking... "Should I buy now or wait to see if rates go down again to the five percents...."

Mortgage Rate News
Interest rates on 30-year fixed rate mortgages peaked in early July at about 6.8% and have fallen gradually and steadily ever since.

Predicting mortgage interest rates just gets harder and harder as time goes on. In the "olden days" all an expert had to do was predict what everyone else thought the economy would do. How the economy actually performs is meaningless. The anticipation of how the economy was going to perform was the key.
Plus, it helped to know if Alan Greenspan was carrying the fat briefcase or the skinny briefcase to the fed meeting. You were stuck guessing on what would happen.
Now everyone is talking.
"Rates need to go up because inflation is too high."
"Rates will be coming down because the economy is slowing."
What's an "expert" to do?

Movement has been pretty steady, whether it has been on the up side or the down side. There does seem to be some risk of inflation, but lower gas prices and a slowing economy help keep inflation in check, so there isn't much danger.
At the same time, prices may be creeping upward because of the spike in oil prices over the last year. Products made from petroleum products (like plastics) must increase in price, too.

Mortgage rates should stay fairly stable and even though the trend looks like it is heading down, things could move either way -- but slowly.

Either way, there is no time better than the present to purchase a home. Appreciation isn't what it used to be but it is nearly always better than paying rent.