Back at the end of March when the Fed stopped buying mortgage-backed assets, economists predicted that mortgage interest rates would start to drift higher toward 6 percent.
Well, they were wrong: Rates dropped to 4.2 percent for a 15-year fixed-rate mortgage and 4.87 percent for a 30-year fixed-rate mortgage.
What caused interest rates to head in the opposite direction? We can credit a perfect financial storm that is actually helping home buyers and home refinancers for a change:
The Euro-zone financial woes drove investors to the safe haven of bonds, so that's helping to keep rates low.
Purchase applications dropped 27 percent last week reducing pressure on rates, according to the Mortgage Bankers Association.
With this weak financial news, it's likely the Fed will not raise its benchmark until at least August and probably not until October, if not later.
So if you thought you missed your best chance to refinance, think again.