In the last two weeks alone, the average 30-year fixed mortgage has fallen to 7.18 from 7.33 percent.

But within five years, you could get a fixed mortgage at around 4%.

They are getting a 30-year fixed mortgage at a rate of 9.25 percent, and will be able to live closer to Manhattan.

Rates on 30-year fixed mortgages, which hovered around 10.5 percent for most of 1990, have dropped since January to 9.3 to 9.75.

Month to month, the difference between 30- and 40-year fixed mortgages can be significant on a tight budget.

Why is it important to have a fixed mortgage?

These rates, the basis for fixed mortgages and much corporate borrowing, are crucial to the health of the economy.

Their solace may be low interest rates: the average rate for a 30-year fixed mortgage is 6.375 percent.

In the last three weeks, the rate on a 30-year fixed mortgage has jumped to 7.07 percent from 6.83 percent.

The bank rate would have to go up to about 3 per cent before you'd be paying the same as a fixed mortgage," he says.