When Rates Fall- or Go Up

Rates on 30-year fixed rate mortgages have fallen for three straight weeks to 5.8 or less. Although there have been frequent predictions for months, and even years, that rates will once again rise to 7 percent within a year, these predictions are also tempered with recognition about other factors. Such as, dollars earned in foreign trade would stop flowing into U.S. Treasury securities, one cause of lower U.S. interest rates, or the Federal Reserve may adopt more aggressive credit tightening to fight inflation. But, as long as rates stay low, home sales march on at a pace beyond this year's expectations. Read here for more.