Mortgage rates dramatically dropped last Thursday (September 13th) when the Federal Reserve announced a $40 billion dollar purchase of mortgage-backed bonds. These purchases, referred to as a third round of quantitative easing (QE3), were intended to lower mortgage rates and positively stimulate the housing market. The QE3 has done just that thus far, causing mortgage rates to fall for seven straight days. Mortgage rates have fallen every day since the Federal Reserve's announcement and have hit all-time lows that have not been seen for months.

The best execution mortgage rate is at a competitive 3.375%. Although the trend appears to be a decrease in rates daily, we recommend not trying to get too far ahead of the game. If you compare this pattern to the mortgage rates in 2010, you will see a parody and rates could always jump back up. We recommended determining what rate you feel comfortable with and locking at that rate. Do not postpone locking your rate for too long and risk losing out on today's low rates.