Earlier this week I had the “feeling” that rates would drop without any true reasoning.? Just like it is described in the book Blink, sometimes you just need to go with your first thoughts or feelings about an issue.? There was no real justification as to why I felt rates were going to go down, but after two weeks of upticks and with the overall trend being down, it was time for a reversal.? The Fed continues to buy mortgage backed securities but has lightened up with the amount in recent weeks.? Making mortgage rate predictions in the future might get a little harder as the Fed might be running out of bullets.

Freddie Mac reported that weekly mortgage rates came in at 4.82% which was .01% lower than the Subprime Blogger prediction.? This is not an all time low but a few more weeks of steady declines will get us to an all time low.? You can be rest assured that if rates do hit an all time low that the media will be all over it.? You will see advertisements all over tv, magazines and websites with titles such as “lowest rates in history; refinance now!”

Just because average mortgage rates are low, it does not mean that refinancing and buying a new home will come easy.? The old adage that I always use is that if “everyone” and their brother are doing it, it is likely not the best decision for a smart investor.? If everyone and their brother think that mortgage rates are going to cause the housing market to bottom, it is VERY likely that we will see another downward movement in home prices; this time it will likely be because of the commercial real estate collapse.

If you are armed with this knowledge, you will be better off in the long run as you will be unlikely to get suckered into a deal that seems “unreal.”? I have had many of my friends and family that feel the deals in the real estate market are unbeatable and that we all must buy as much as we can right now.? Um, if that is the case, shouldn’t the smarter and richer people in America be sinking millions of dollars into the real estate market?? As always, buyer beware when it comes to the “best deals in history.”? If it is too good to be true, then more than likely it is!

Please make sure you go into your mortgage brokers office with a strong knowledge of the current trends in your market.? Each market in America is a little bit different but a quick Google search and a couple hours will give you a sufficient amount of data to be a smart buyer.? Do not let mortgage broker pull the covers over your head when it comes to the current mortgage market.? Many of them may tell you that things are getting much better and now is the time to get a new home as there won’t be many left on the market in the near future.? All you have to say to that broker is; “look at the new housing supply chart!” Also, you can always come back to Subprime Blogger for advice and mortgage rate predictions.