Bond Buying Drives Mortgage Rates to New Lows

30 yr falls to 4.17%, lowest on records dating back to 1971

Since the Fed announced that it would be pouring $600bln into Bonds, mortgage rates have been doing what they are supposed to be doing, heading down again and touching new lows.

This week the Fed stated it would be aggressive over the next 30 days and pound in $105bln. The extra demand signals that the yield on treasury bonds will go lower and mortgage rates tend to track those yields.

Is 4% or lower for a 30 year mortgage finally possible? I guess we will see over the next 30 days.

If you are thinking about buying a new home or investment property, there has never been a better time to do so. These low rates combined with lower proeprty value create a unique opportunity to own a home for a lot less than you would have paid 3-4 years ago.

If you are on the fence and are afraid in this market, here is your push to get it done. Always remember Real Estate and owning a home is a long term investment. In the long term, the property will always be worth more than you paid.