Mortgage rates on the standard 30 year term seem to have peaked at 6.40% in July and have started to trend down again. The constant battle between those who feel the economy is in or headed towards recessions versus those that see the economy as stable continues to rage on. The demand for Mortgages in late spring and early summer drove the rates from the 5.75% level to well above six percent in a matter of weeks. The higher mortgage rates has suppressed the the buyers market and pushed many potential home buyers back into the rental market. This has created an interesting opportunity for potential landlords and increased demand for buy to let mortgages. This cycle is more than likely short lived, as the mortgage rate cycles are very seasonal - spring and summer bring hikes in the rates and fall and winter see the cooling of housing sales and rates. The 6.40% ceiling has not been broken for many years and the cooling housing market will more than likely allow us to see lower rates again in the next six months. Compare mortgages to what they were over five years ago and you may be surprised to see that rates are not much lower than they are today. In fact, at the end of 2002 the average 30 year rate was 5.8% - about where rates were just in July. For all the concern about the economy and the housing markets, mortgage rates falling again.