2016-02-27washingtonpost.com

Just a few months ago, virtually every financial expert was warning that years of record-low mortgage rates were about to end. The Federal Reserve was preparing to raise interest rates for the first time since the Great Recession, a move that was supposed to increase the cost of borrowing across the economy.

...

But since then, the economy has defied almost every forecast. Analysts are debating the probability of a recession rather than the progress of the recovery. Instead of raising interest rates, the central bank is veering in a far different direction, hoping not to cut them. And that means mortgage rates -- much to Liljehom's chagrin -- are lower now than when he refinanced.

"I could have saved more money if I'd waited," Liljehom said. "My interest rate is still quite low, but it does sting a little knowing it could have been lower."

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Since Jan. 1, the average rate on a 30-year fixed mortgage has dropped from 4.01 to 3.62 percent, according to Freddie Mac. Mortgage rates have sunk to levels not seen in nearly a year and are close to their all-time low, prompting economists to reduce their forecasts for rates in 2016.



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