How long can rates stay this low, especially when you look the the rate trend graph below.
The first half of this year will be a period of adjustment to fiscal restraint as well as uncertainty of policy going forward. Yet, most economists feel GDP growth will gain momentum over the course of the year, as households and businesses adjust to the new fiscal framework and residential construction steadily improves. Single family housing starts are expected to rise 27 percent this year and multifamily starts should rise near 30 percent.
The housing market continues to strengthen as the excess inventory of homes has gradually diminished, household job/income prospects have improved, bank balance sheets have stabilized, and home prices have moved upward.