It seems the majority of folks out there feel that they should wait on purchasing a home because they feel mortgage rates are going to drop. Well, there are some opinions about that happening. Below you can read the analysis from our friends at the Shirmeyer Report (they've been analyzing the nations economy for a long, long time) and their opinion is that rates aren't going to get much better than they are now. Of course, no one can totally predict what will happen with rates, but if you're one of those who are waiting to purchase a home hoping rates will go down, please read this following excerpt to help you make your decision.

Looking for mortgage rates to decline a lot? I don't like always being the
messenger of bad news, but someone has to do it. Long term interest rates,
including mortgages, do have an outside chance of falling a little from the current
levels but not enough that will be noticeable in any big way. Inflation fears are
still there and as long as investors normally attracted to long term debt
(insurance companies, pension funds and others that historically need to buy long
term debt) to match liabilities with long assets have little reason now to step in
on the 10 yr note. Inflation concerns won't go away as long as commodity prices
increase. Core inflation is a meager 2.2%, but the overall inflation rate is about
3.4%. Never mind that the core rate (ex food and energy) is low; markets will begin
to look at the overall rate as more an indication of inflation. Even just focusing
on the core rate; at 2.2% and the yield on the current 10 yr yield at 3.65% leaves
a real rate of return at a miniscule 1.45% and that is not enough to attract buyers
in any major way.