So much for those predictions about the end of low mortgage rates

AP -- Even though the Federal Reserve has begun raising rates, mortgage rates have now dropped back, to levels we haven't seen since April.

Experts say the reason is last week's government report that a disappointing number of new jobs were created in June. Senior vice president Joe Blalock (BLAY'-lock) with online lender Mortgage-IT (iht) says the thinking is the Fed may go easier with the rate hikes. He says if we don't see inflation rising and employment growing more substantially, the Fed may not have to be as aggressive as many people were anticipating.

So, if you thought you missed the boat on refinancing at a low rate, you may have been wrong. Blalock says we may continue to see rates backing down, and many people may realize it's the best time to refinance -- or, possibly, the last chance to do that.

Chief economist Frank Nothaft (NOHT'-haft) with mortgage company Freddie Mac says it's also a good time for house-hunters, because lower rates mean more affordable housing.

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