Recently the Federal Reserve unexpectedly announced a $500 billion budget for buying mortgage debt from GSEs, Fannie Mae and Freddie Mac, and the demand for mortgage backed securities increased dramatically.

This news helped mortgage rates reach their lowest levels since January 22, 2008.

January 22, 2008, was the date of another economic surprise, a 0.750 percent Fed Funds Rate cut. This move was intended to promote economic growth and development and it is federal interventions like these that make predicting mortgage rates difficult. As we know, mortgage rates don't move to the beat of just one drum.

Typically, these interventions are followed by uncertainty on Wall Street which could lead to higher mortgage rates. For example, the 30 days following January 22nd, mortgage rates increased from a 3 year low to a 3 year high. I'm not saying that this is what will happen this December, but rate trends tend to repeat themselves over time.

Today, rates are still near historic lows.

Please speak with me today at dwalters@integritymtgonline.com for your free mortgage consultation and rate quote.