I wish I had a dollar for each time the question above has been asked of me in the past 45 days. While no one, including myself, actually knows whether interest rates will go higher, lower, or remain the same, we can hypothesize from charts and the stream of consistent positive economic data that interest rates are more likely to remain at current levels or move higher.
Attached is a price chart of FNMA 4.50% MBS with a date range from February 2010 to February 2011. Recall that as the price of a bond moves higher the yield will move lower, so with that in mind you can clearly see where prices reached their high point/yields there low point in early November 2010. The far right hand side of the chart reflects the recent steep sell-off, or put another way, all of us mortgage folks jumping off the cliff.
A 30 year fixed rate loan at 4.875% or 5.00% is a great deal compared to mortgage rates over the past 50 years!
A person's greatest virtue is his ability to correct his mistakes and continually make a new person of himself.