Is this claim even true? Que today's chart from CalculatedRisk please....
This chart only goes to 1971 but other records show that rates were in the 4% range dating back to the 1950's. Interestingly, it wasn't until the 50's that American's decided that we were not going to return back to a depression economy. America's psyche had been scarred by a stymieing depression and then austerity and sacrifice during WWII. Once the Great Depression began, it took 20 years for the economy to become vibrant again...long enough to have a lasting impact on the behavior and attitudes of an entire generation. Lest I digress...
If you can qualify for it, money is incredibly cheap right now. If you combine today's low rates with the near rock-bottom prices of bank owned and short sale properties, monthly payments on home loans are ridiculously low. If you are an investor looking to purchase property, this translates into more positive cash flow.
Can rates go any lower? They can and likely will for a short while as Europe's debt crisis creates a mass money exodus and everyone piles into U.S. Treasuries as a safe haven (relative to risk elsewhere in the world). Much of the interest rate declines we have seen since 2008 have been the result of this activity.
So, when things start stabilizing in the rest of the world, look for rates to start climbing again. Or, if we hit a bout of inflation here at home, look for the same. In the meantime, lock in your rate, buy some real estate, and laugh your way to the bank.
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