Interest rates have not been this low since WWII. Why? There are 2 major factors. First, bondholders think that inflation will remain low in the US for an extended period of time. This caused the ten-year US Treasury rate to fall to 3.2 - 3.6% in the later part of 2009. Secondly, the Federal Reserve Bank has purchased nearly all the mortage-backed securities issued by Fannie Mae and Freddie Mac in 2009. This totals over $1 trillion for the year and the program has been extended through March 2010. The Fed's actions are unprecedented and is meant to stimulate the economy by keeping mortgage rates low. When the Fed stops buying these securities from Frannie and Freddie, mortgage rates will increase. Bottom line - if you're in the market to buy property, go ahead and do it now.