Mortage rates reached another record low this week...

The average rate for a 30 year fixed mortgage fell to a new low this week, going from 3.81% to 3.7%. Rates on 15 year fixed mortages fell from 3.04% to 2.95%.

The lower interest rates were a direct result of the Federal Reserve re-starting its bond-buying program, known as Quantitative Easing or QE, for short. As long as the Fed continues to buy bonds, rates could continue to fall or, at least, remain steady. The Fed took the action, hoping to spur the economy. The Fed has stated it intends to buy $40 billion in mortage bonds each month.

A 3.7% 30 year rate on a loan of $165,000 would result in a principal and interest payment of $759.57. A 2.95% 15 year loan, on the same amount, would give you a P&I payment of $1,135.50.

Consider this: Rates in the 5% range were unheard of prior to 2003 and rates in the 4% range didn't appear until 2010.