Experts believe low mortgage rates will hold steady through 2012

Housing market analysts are predicting mortgage rates will continue to remain low as the Federal Reserve has pledged to maintain the rates through 2013. However, analysts also predict that high unemployment and continued low home prices are preventing consumers from buying homes.

Doug Duncan, the vice president and chief economist for Fannie Mae, told the Los Angeles Times that home prices are likely to remain depressed through 2012, and total dollars spent on purchases will remain close to 2011 levels. In addition, Freddie Mac predicted two years ago that lenders would write $1.8 million in home loans in 2011, but has since lowered that estimate to $1 trillion.

The source reported that 2011 ended with better than expected housing market reports, but home sales remained low. The 30-year fixed mortgage rates remained below 4 percent, enabling some homeowners to refinance their home loans, which spurred the positive housing market reports.

According to Zillow's Mortage Marketplace report, the 30-year fixed mortgage rate is currently 3.73 percent, down eight basis points from 3.81 percent from last week. This is the lowest rate reported since the launch of the Zillow Mortgage Marketplace in April 2008.

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