How Low Can Mortgage Rates Go?

It seems difficult to believe that interest rates are firmly in the mid-4%'s (30 yrs, no-points). I happily paid 7.5% for the life of my mortgage for my home in New York, while folks who bought just a few years later were well above 10%.

SmartMoney magazine ran an article on their online magazine that discusses the possibilities for the near future. Read the article .."How Low Can Mortgage Rates Go?".  A banker I spoke with last week suggests that we should look no further than the unemployment data for clues. He theorized that the rates won't rise much until the unemployment figures get significantly better. Nice theory!