Although mortgage rates remain near historic lows, some people are holding off buying a home or refinancing in hopes of seeing those rates fall even further.
But could rates for fixed-rate home loans decline from the 3-4 percent range to as low as 2 percent? The bad news: Most experts agree that another big drop in mortgage rates isn’t very likely. The good news: Rates are so low right now that, combined with lower home prices, they make home buying in most areas of the country a clear-cut financial advantage over renting.
Rates aren’t expected to remain this low forever, though. As the economy improves, rates are projected to climb. A couple of years from now, we’ll probably look back at this time as having been a once-in-a-lifetime opportunity to have financed a home for a ridiculously low mortgage rate.