Mortgage Rates and QE2

The Federal Reserve announced plans to buy $600 billion in government bonds earlier this month.  How will this program, known as "QE2," affect interest rates?

One goal of the strategy is keeping interest rates low for borrowers.  This will probably happen, at least for a while.  However, nobody knows if mortgage rates will go lower than they are, or just stay low for longer than they otherwise would have.

Amy Hoak explores the impact on mortgage rates at MarketWatch.com.  The consensus seems to be that rates might come down a little in the coming months, but it's probably not worth gambling.  As usual, it's more important to focus on your needs and goals than on trying to time things perfectly.