AUSTIN, Texas -- Mortgage interest rates, which have been dropping steadily, are likely to remain stable for the next few months, economists say.
The core rate of inflation, which is the consumer price index excluding volatile food and energy prices, is dropping toward 4 percent, says Norman Fieleke, an economist with the Federal Reserve Bank of Boston.
"That's all known and incorporated into rates," says Tom Holloway, senior economist at the Mortgage Bankers Association America.
He argues that mortgage interest rates won't get much lower -- or higher. The outlook is "relatively flat," adds Richard Peterson, chief economist at Continental Bank in Chicago.