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Mortgage rates defy prediction: Is now a good time to buy a home?

Mortgage rates defy prediction: Is now a good time to buy a home?

When the Federal Reserve raised interest rates in December, people who had been flirting with buying a home worried they might have waited too long.

But worries about rising mortgage rates have been unwarranted. Since the Fed's rate increase, rates on 30-year mortgages have dropped below 4 percent, and many mortgage experts expect them to stay below 4.25 percent this year.

"If the stock market drops another 300 to 400 points some day, mortgage rates might go down another eighth of a percent," said Ken Perlmutter, president of Perl Mortgage of Chicago. He thinks the dip will be short-lived, and rates are about as low as they will go. He's not expecting a return to the...

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