When the Fed's raised rates late last year it looked like the confirmation to all those predictions of rising mortgage rates for 30-year fixed would head toward 5% or even higher, not so much! Take a look the average contract interest rate on a 30-year already below 4% headed even lower two weeks ago to 3.64% that according to mortgage news daily. Now that's down from close to four and a quarter last summer, why? Combination of Janet Yellen (the No. 2 at the Fed's Board of Governors) spooking the market, the FED's admits confirming it, easily concerned over the European economy ongoing low oil prices take your pick add them up. The drop in rates is boosting refinances but three weeks ago it really did nothing for mortgage applications to buy a home! Both home buyers and sellers think now is a bad time to make a deal that according to a monthly survey from Fannie Mae. Even sellers and even with prices high, even sellers there's more of them now feel it's a bad time to sell than a good time to sell. And that's the first time we've seen that in over a year now. Here's the interesting part, the mortgage guru's we've spoken with who continually tell us that there is a floor on rates. Well, they are changing their tune now. They're making noises that we could actually break through a new low on the 30-year fixed.