The Bridgewaters, Massachusetts

Right now, we don't know how much in Mortgage Backed Securities (MBSs) the Feds plan on buying. But, the Fed says it has started purchasing MBSs today. This is what we've been waiting for. And, MBS prices are already up more than half a point this morning. This means MBS yields - and mortgage rates - will go down. The Fed said they will provide details each Thursday afternoon on the amount of MBS purchases they make each week.

You will see mortgage rates drop to historic lows, and lenders will be swamped with mortgage applications. I encourage you to apply for a mortgage somewhere - anywhere - now, and get the process started. You don't have to lock in a rate today - you can always float and lock in later. If you do, you'll be in a better position to lock in when the rates do drop again and not miss another opportunity for a great low rate.