Rumors are starting to surface about the FED lowering the rate to 1%!! Not sure if this is true or not, but I think that it will be a good idea.
Will it affect mortgage rates? Not sure, most of the time when the FED lowers the rate, mortgage rates go up in the short term and lower in the long term. This time I expect the opposite to be true and you will see mortgage rates hit an all time low, before they start to climb back up. Either way, 2009 should produce a really wild market.
Story from Marketwatch
