Click to enlarge.
Should the economy continue to struggle and short-term CD rates therefore stay near 0% for longer than most assume possible (think Japan after their housing bubble popped), then this chart would suggest mortgage rates could fall below 2% (at least temporarily).
In any event, those thinking that today's mortgage rates are currently at extreme bargain levels may wish to reconsider. Compared to 3-month certificates of deposit, they are pretty much what we would expect to see.
This is not a prediction nor is it investment advice. It is simply something to think about.
Source Data:
St. Louis Fed: Custom Chart
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