A Near Future Drop in Interest Rates?

There is a lot of speculation right now in the real estate market between lenders, agents, and even buyers and sellers of whether or not interest rates will drop in the near future down to 4% to 4.5%. This is something that has been going through the housing market grapevines for the past couple of months. Many are very skeptical and are saying that interest rates will only continue to go up. While others are optimistic that interest rates will go significantly back down below 5%. One thing is for sure that rates have never been so volatile as they have been the last couple of weeks. The rates went up this week to 5.125% (conforming loan). Congress is working on a new stimulus plan that will hopefully be passed in the near future. If so, many loan officers are optimistic that rates will hit an all time low. In turn, this will help encourage buyers, will help buyers qualify for more house, will help current homeowners refinance at a lower rate which will help more homeowners have a more affordable mortgage and help prevent foreclosure, and overall will help stimulate the real estate market.