This was the heading of an article in the New York Times on April 10th, the average 30 yr fixed rate around that time was 4.875% according to mortgage-X.com.
It's interesting that interest rates did indeed go down further, the average rate from the same source now is 4.25% with brief forays below 4%.
The Treasury just auctioned off 10B of 5 yr TIPS notes with a negative interest rate. It is possible that we are looking at a bond bubble, the flight to debt is due to a perceived lack of good investment alternatives although commodities and precious metals have been rising to record levels.
Although in our area buyers seem to be on the fence due to personal circumstances and worry about the economy, it is currently a great time to lock in a great rate and it's buyers' market. People tend to act on fear and greed and don't always time investments well in retrospect.
I often tell the story about buyers in Fremont, California where I was an agent during part of the real estate boom of 1996-2006. (yes, ten years) There was a forty year old house, 1210 square foot house that we put on the market for $469,000. In one week we received 23 offers and it sold for $525,000. There were so many offers that I just put them in a box to review them with the seller, it took about four hours to go over them all considering terms, price and strength of financing to find the three top ones to counter. My point is that people can have a herd mentality and the best time to do something is not necessarily when everyone else is doing it.
Don't have herd mentality!