Today mortgage rates in Connecticut and the rest of the US for that matter are still under 5 percent. In fact for those that qualify today we are 4.75 percent for a 30 year fixed mortgage and paying ‘zero’ points. The question is how long will rates be here?

Mortgage rates are well off their fresh lows that bottomed out in the end of November and the first week of December and well up from the low 4’s in the spring of 2009.

The Federal Reserve has been a main component keeping rates where they are. In fact they are more than likely the main reason mortgage rates are still sub 5 percent. The thought behind that statement is as part of our economic bailout the Fed was the main buyer of mortgage backed securities making the mortgage rates almost artificially depressed to stimulate the housing market. Well in the coming months that is coming to an end and we will see the true test of the mortgage backed securities in the open market. Albeit sub 5 percent is not where we will be this summer.

The point here is if you are one of the many on the fence about refinancing or purchasing some will end up on the sub 5 percent side of the fence and then there will be those who unfortunately will be looking at 5 percent and higher. The time is now if the rate makes sense for you.