What goes up, must come down...or is it the other way around?

According to an article on CNNMoney, the average interest rate for the 30-year fixed home loan fell down .10 % to 4.22%. This is a much lower rate than the 4.57% that we saw earlier this year. The significant drop came 3 weeks ago when the Federal Reserve announced they would not change the current program for purchasing mortgage-backed securities. According to CNNMoney, “Most industry experts had thought the Feds would start to taper off those purchases, which bring liquidity to the mortgage markets and help keep rates low.” What does all this mean? It means the cost to borrow money to purchase a home is still relatively low. With the small decline over the past 3 weeks alone, home buyers would save approximately $42 a month on a $200,000 loan. Now would be a great time to put your looking goggles on for that new home. These rates are not expected to stay low!!