Eyeing a home loan? Current mortgage rates are about as low as they’ll go this year.

By Jerome Idaszak
Mortgage rates aren't likely to ease the rest of the year. The edgy credit markets are taking a toll, severing the link between yields on 10-year Treasuries, down a half point this year, and 30-year fixed rate home loans, which have dipped only a quarter point.
Nervous investors flocking to Treasuries are trimming those yields, but equally nervous mortgage lenders aren’t loosening their purse strings. And the series of interest rate cuts by the Federal Reserve don't affect fixed-rate mortgages because long-term rates are sensitive to broad economic trends. The Fed's moves aren't totally irrelevant but have a delayed and indirect impact.
Look for the 30-year fixed mortgage to end the year at around 6%, up a tick from the current 5.88%. Why? Investors in bonds will fret about higher inflation and push interest rates upward. Bond buyers will also pay more attention to the fiscal stimulus passed by Congress, which will help boost the federal budget deficit to around $500 billion. As Congress borrows to raise money for that rising deficit, the added supply of Treasuries will also hike long-term rates higher.