Mortgage rates have dropped further today due to:

 

a. Fall in the stock market

b. lower inflationary expectations

c. Federal Reserve purchase of mortgage backed securities

d. Federal Reserve purchase of long term bonds

e. Federal Reserve sale of short term bonds

f. all of the above

 

Lender Craig Jerrell says

The correct answer is f. "all of the above". 30 year fixed rates have fallen to 3.75% from 4.00% with the Fed actions.

It is hopeful this will spur sales, but unemployment, deflationary thinking and consumer confidence are still dragging the purchase market.