Fed’s New Round of Stimulus Likely to Lower Rates

As of Thursday, homebuyers could get a 30-year fixed-rate mortgage at an average interest rate of 3.55%, according to Freddie Mac, meaning borrowing money to buy a home is very close to as cheap as it has ever been. Those rates could fall even lower. The Federal Reserve is launching a third round of “quantitative easing,” and will start buying mortgage-backed securities guaranteed by government-sponsored entities at the rate of $40 billion per month, in a move meant to put downward pressure on long-term interest rates, especially mortgages.

Wall Street Journal  September 13, 2012