Although the economy has shown signs of improvement through late 2011, home sales have still lagged in many parts of the United States. For many homeowners, this is a double-edged sword. While it's certainly a buyer's market, low mortgage rates have made it easier to refinance and save money. Over the course of 2012, mortgage rates will likely continue to change, although there are numerous conflicting reports as to the direction and extent of those changes.

According to Freddie Mac, home prices may rise through the first half of 2012. This usually means that banks will raise mortgage rates, as more demand means that banking institutions don't have to offer prime rates to as many buyers.

However, this is only one prediction, and while Freddie Mac's predictions are typically sound, many real estate experts expect tough times for the housing market through the next year. Current mortgage rates are already low, so it's unlikely that they'll slip too much. Still, depending on where buyers live, they might see slight decreases over the next 12 months as the market adjusts to new demand growth.

Ultimately, location is the most important factor when considering whether current mortgage rates will stick around through the next year. In some parts of the country, homeowners are seeing their property values steadily climb. This is particularly true in parts of the Southwest including many suburban neighborhoods of Arizona. These neighborhoods were hit hard by the housing market crash, but as mortgage rates dropped precipitously in the months following the crash, the market has slowly recovered. Current mortgage rates may rise in these markets and in other markets that are particularly susceptible to relatively minor changes in the United States economy.

It's important to remember that it's difficult to make dependable predictions about the housing market. Dozens of factors could affect mortgage rates in 2012, not the least of which are the presidential campaign and whether the economy continues to grow. Ultimately, homeowners who are considering a refinance should look for rates as soon as possible and buyers should also evaluate their options. The low current mortgage rates are one of the only upsides to the last few years of troubled housing and job markets, and by taking advantage of rates while they last, buyers and homeowners can drastically cut their mortgage payments in 2012 and beyond.