U.S. rate on 15-year mortgage at record 2.56%

How low will mortgage rates go before they start to rise again?

The question of course is not that will rates rise but when rates will rise, and this will have an effect on the US housing recovery as some borrowers will back out of the market as they may no longer feel that a higher interest rate is good value for them given the record lows over the past few years.

This is despite (an assumed) improving confidence in the economy, improving credit worthiness and a higher flow of credit from lenders.

One in four (25%) mortgage industry experts polled by Bankrate.com this week expect rates to sink even lower, while the majority (58%) see little change over the short term. The remaining 17% expect an increase.

As the economy grows, then borrowers' improving income levels will need to accelerate to stay ahead of future interest rate rises to maintain the housing recovery.

Source: Florida Realtors