It looks like interest rates are not sure what to do. They are in a holding pattern for the most part. If you are waiting to buy a home for interest rates to drop, they might not drop much more.
This article gives some good insight into what is happening with the interest rate.
Rates on 30-year home loans fall to 5.09 percent
Rates for 30-year home loans inched downward this week, the first decline in a month, but remained above last month’s record lows.
The average rate on a 30-year fixed mortgage was 5.09 percent this week, down from 5.14 percent a week earlier, mortgage company Freddie Mac said Thursday.
Rates dropped to a record low of 4.71 percent in early December, pushed down by an aggressive government campaign to reduce consumers’ borrowing costs, but then rose steadily for the rest of the month.
Freddie Mac collects mortgage rates on Monday through Wednesday of each week from lenders around the country. Rates often fluctuate significantly, even within a given day, often in line with long-term Treasury bonds.
The Federal Reserve is pumping $1.25 trillion into mortgage-backed securities to try to bring down mortgage rates, but that money is set to run out next spring. The goal of the program is to make home buying more affordable and prop up the housing market. –more
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