Can home loan rates stay this low forever or is it just a matter of time before interest rates start creeping up? Did you know that fixed rate 30-year mortgages have averaged below 5% for 13th consecutive months?

If you have been considering financing a new home buy or doing a home refinance transaction, you might want to do it sooner than later. There are several reasons that most mortgage executives believe that home mortgage rates will rise in the months ahead.

• When the Economy Rebounds the Federal Reserve is sure to begin Raising Rates
  Although the Obama administration claims that the economic recovery began the summer of 2009, many economists do not agree because unemployment has remained high. As soon at the unemployment rate begins to fall and corporate profit margins start to grow, you can expect the Fed to shift gears on keeping the interest rates low. .
• When the Housing Market Rebounds
  As American consumers begin to do better financially, it raises the demand for housing. Likely this will drive house prices and mortgage rates higher. Many first time home buyers have really benefitted from the low fixed FHA mortgage rates, but that can’t last forever.
• Inflation Will Drive Interest Rates Upward
  With food and energy prices continue to rise, it will be difficult for the Federal Reserve to keep the rates this low for long. In addition, if this low rate trend continues much longer, mortgage lenders will need to protect their profit margins and be forced to hike mortgage rates.

The bottom line is that mortgage interest rates can’t stay this low much longer. Expect conventional and government lenders to begin raising rates for home buying and mortgage refinancing later this year or early 2012