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Amid current record-low rates and the Federal Reserve’s Operation Twist, HSH.com released its latest Two-Month Forecast for mortgage rates. The Two-Month Forecast predicts that rates will remain at or near their current record low levels within the next weeks, possibly falling even lower in the early part of the two-month period of the forecast.  This is great news not only for buyers but also for homeowners wanting to sell.

Of course with lower interest rates, comes refinancing.  According to The Wall Street Journal, some homeowners are beginning to refinance their residential mortgages faster than expected in response to falling long-term interest rates, causing a chunk of the $5 trillion in mortgage-backed securities to slump in secondary markets.

Christian Science Monitor goes on to say how mortgage rates have fallen over the past two months as nervous investors have shifted money into the safety of Treasury bonds. The demand for Treasurys has caused Treasury yields to fall. And mortgage rates tend to track the yields on long-term Treasurys.

Yet the falling rates have yet to spark a home-buying boom — or energize the economy. New-home sales collapsed in May after homebuying tax credits expired. The economy also remains under pressure from high unemployment. And many people don't qualify under tightened lending rules.

"As long as prospective homebuyers are still concerned about their jobs and financial well-being, many will be reluctant to take the plunge, even though affordability has never been better," said Greg McBride, senior financial analyst with Bankrate.com.

All in all, figure out whether refinancing makes sense for you and what it will cost. All those fees, appraisals, title insurance, and so on really add up. Ask your lender for an estimate of what those costs will be.   Then figure out how long it will take before the money you save from the lower rate will pay back the costs of refinancing.

As for buying, if you have a stable job and money to put down, then go for it!  Grab that loan with low interest rates while you can and let Bodin Realty International help you do it!  Stop on in today for any of your real estate needs.