What are they waiting for?

I've talked with a lot of consumers here in the Portland area who tell me they are waiting. Waiting to refinance or purchase property.

What are the waiting for? A better economy? Lower real estate prices? A sign from a higher power?

Turns out the answers are no, no and no.

They are waiting for the 4.5% mortgage rates they've been hearing are right around the corner. So they are rolling the dice, some holding mortgages with rates over 6%, hoping for that magic 4 dot 5.

And that means that they are saying, "No" to mortgage rates as low as 4.75%.

Are they right to wait?

No, say prominent economists...

"The downward trend we have seen in mortgage rates will not last beyond the first half of this year," said Celia Chen, senior director of housing economics at Moody's Economy.com in West Chester, Pennsylvania.

"By then, the Federal Reserve's program will have run its course and other issues will move to the forefront that could push mortgage rates higher," she said.

Read more about it here...