Quoting off hand from the book “A History of Interest Rates,” published by Rutgers University Press, states that the average mortgage rate in 1945 was 4.7% and according to perceived trends that mortgage interest rates are following at the present moment, it is likely that we will see the US mortgage rate falling to the lowest rate since World War II.

In spite of the unsure economy experienced by citizens of the United States, many mortgage applications, and more specifically the re-financing of mortgages, has been made by consumers in the attempt to salvage their mortgage payment problems or foreclosure proceedings by making use of the reduced mortgage interest rates and as a result, the slashing of financing costs as well.

Unfortunately, regardless of dropping mortgage interest rates, is not enough to fan the flames of the residential property market. In a climate where job uncertainty and effective job losses are at the order of the day, it is unlikely that lower mortgage interest rates will spur consumers to invest in 20 to 30 year mortgage debt to buy residential property.

Seen from the mortgages financing side, with progressing job losses, dwindling stock markets, decreasing property values and recent home loan default figures banks are not too eager to flock out loans that easy as before, lower mortgage interest rates in spite.

Further more, if you look at the delinquency relating to mortgages it is estimated to be the highest since 1972. Home loans in foreclosure also reached an unprecedented 3,3%.

It is clear that in spite of the federal government’s attempts to lower mortgage interest rates and buying supplementary mortgage bonds of to the extent of $1.25 trillion, will not be enough to encourage consumer to buy residential property or plead a case for the consumer at the bank.