If you haven't taken advantage of low interest rates, you may be running out of time.  Over a year ago, the Federal Reserve began buying mortgage backed securities on a mass scale to help push down mortgage rates and prop up the economy.  This program has generated a wave of refinances and purchases, which have had a huge impact on the economy.  Through rate/term refinances, homeowners have been able to lower their monthly payments and free up money for buying cars, consumer goods, savings, or paying down credit cards.  First time homebuyers have flocked to real estate offices across the country to lock in low interest rates and take advantage of federal tax credits.

Despite the results, this program is not sustainable. The Federal Reserve allocated $1.25 trillion for this program and those funds will be fully spent by the end of March.  After the program ends, the mortgage backed securities market will be on its own.  We don't know how high or how fast they will rise.  However, it is safe to say that they are not going to remain under 5% for a significant amount of time.

In a Business Week article called, If You Don't Buy a House Now, You're Stupid or Broke, Marc Roth plots the historic course of interest rates over the past 30 years.  As you can see from his chart below, mortgage rates are at all time lows and they have little room to fall and quite a bit of room to rise.