Mortgage rates have been below 4 percent for all but one week so far this year, and could remain in this area for the quite some time.
The Federal Open Market Committee recently announced it plans to continue stimulating the Treasury bonds market, subsequently keeping mortgage rates low, until at least 2014. However, the Fed did not reveal any plans to add further stimulus to the overall economy to improve its growth rate.
"The Committee will closely monitor incoming information on economic and financial developments and will provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions in a context of price stability," the FOMC said.
The decision was nearly unanimous between all members of the committee. Only Federal Reserve Bank of Richmond president Jeffrey Lacker disagreed with the initiative, claiming the time frame was not appropriate, since current economic conditions are so unpredictable, that it's difficult to gauge a long-term recovery time.
Mortgage records indicate that the delinquency rate has declined considerably during the past year, as more borrowers capitalize on these affordable options to refinance. This trend could continue in the coming years.