Those that want to buy or refinance may get the deal of the century at their local bank if they do so soon.
Late last year, the National Association of Realtors (NAR) predicted that if rates hit 4.5 percent because of proposed emergency government programs to pump cash into banks, it could inspire as many as half a million home sales. But even without the specific kind of aid that the NAR recommended, mortgage rates have been falling for months. Now, rates on many of the most popular home financing products are below five percent and are beginning to close the distance on that incredibly affordable 4.5 percent target. Moody’s Economy recently predicted that interest rates would likely hit that level by the middle of 2009 and continue dropping to a low of 4.37 percent in the second quarter.