After seeing government engineered sinking mortgage rates and a quick surge in mortgage refinancing over the last several weeks, last week mortgage applications dropped to levels not seen since last November.  The 30 year fixed loan rate is hovering in the low to mid 5% range where it had previously been in the high 4% range earlier in January.

Where do mortgage rates go from here?  I don’t believe anyone can say with any real certainty, however I personally believe it’s unlikely to see them fall substantially from current levels.  The credit markets are still in disarray and lending institutions are pricing in higher risk premiums.

If you’re considering refinancing or buying a home – now certainly seems like a good time to act considering where mortgage rates are currently.  While the obvious directive of the new administration is to get and keep mortgage rates lower, helping to stabilize the sagging real estate market, it remains to be seen just what ammunition they have left to try and make this happen.