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Ah, but imagine if rates go lower? Well, they could go a lttle bit lower, and not much more than that. There isn't room for it to take place. The Federal Reserve have their own rates at zero approximately on short-term borrowing. The bonds markets are actually getting two and three percent returns on U.S. Treasuries, while noticing that the national debt is out of control. The risk associated with that debt is going to make it not as likely that investors will buy U.S. debt down the road. The only way to counter that disaster is made for the Fed to raise interest rates. Mortgage rates has decided to follow.