Well the federal reserve cut the rate by 3/4 today. This has already made rates go up a little and I imagine they may go up a little more.
I just read a great article on interest rates on CNBC that I thought did a good job of explaining what rates may do.
In the article it states that it doesn't believe rates are likely to move lower.
The reason that the Federal Reserve's agressive rate-cutting will have little or no effect on long-term loans to homeowners is because banks continue to be scared to lend money and investors are especially leery of mortgage-backed securities.
So instead of using the new liquidity from the Fed, banks are using the newfound liquidity to boost their balance sheets and pay dividends.
The other main point the article mentioned is that most analysts are convinced that if the US is not in a technical recession it certainly has entered a psychological one. Once people are convinced that homes will hold their value they'll be convinced to get back in the real estate market, even if mortgage rates do go up.
The article can be read in full at http://www.cnbc.com/id/23690581
So I believe if the rates are good enough for you, buy or refinance now. The problem with waiting is that the program you want to be in may not exist. Lately, some lenders have dropped 100% programs and stated income programs. This is going to hurt some people looking to get into a home. So if you are thinking about buying take advantage of the low rates and low home prices and get into the game!
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