Interest Rate Data
Interest rates are simply at their lowest point in history. In a bid to stimulate the economy, Fed Chairman Ben Bernanke has begun a program of purchasing mortgage backed securities in order to drive long term mortgage rates down further. This program has been underway since September 2012. Chairman Bernanke has also indicated he intends to keep the federal funds rate near zero "at least through mid-2015".
The Federal Reserve's actions, along with continued low rates of inflation create a hyper-low interest rate market for the foreseeable future. This makes the purchase of real estate with mortgage debt attractive to investors and end-users alike. The five-year graph at right, updated on November 1, 2012, tells the story.