A very interesting "Mortgage Matters.." this week from Jim Belote.
The FED is pumping in even more money(millions) into purchasing treasury notes and mortgage backed securities with newly printed money. Yes, newly printed money...making your dollars worth less..possibly, as noted below, pushing inflation higher. I have to be honest the noted 2% inflation planned for next year pushed 2.5% due to FED action is nothing to lose sleep over. BUT the long term affect of 'loose money' policy can be steep devaluation of dollar(translated: INFLATION).
You will note below that the FED's effort was to reduce mortgage rates to continue the housing recovering. Yet bonds yeilds went up rather than down thus not helping lower mortgage rates. Though not tied directly tied to these bonds, mortgage rates do track along bond yields due to investor interest in both.
Still the best time to buy a home with home prices trending up and rates still low....don't miss out. 2013 could be a barnburner!