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There is speculation that mortgage rates will head lower for the month of October, before heading higher come November. If you are looking to buy a home, now is the time to do it, before the first-time home buyer tax credit expires, and before the Fed stops buying Treasuries. Indeed, the Fed’s program has been part of the reason mortgage rates have been so low. Suprime Blogger offers this on mortgage interest rates after October:

If an all time low is possible it will have to happen in the month of October because after Halloween the Federal Reserve Bank will stop buying US Treasuries by the end of the month.  When the Fed stops buying US Treasuries you can expect to see an increase in treasury yields until they become attractive to foreign investors.  Without the assistance of the Fed and foreign investors there is little doubt that mortgage rates are going to go up as treasury yields increase.

For those who are ready to buy a home, the opportunity to take advantage of low prices and low mortgage rates is slipping away.