What causes interest rates to remain low?

Mortgage rates dropped dramatically when the government intervened and bought over a trillion dollars worth of mortgage-backed securities. Now that they are less involved, the problem is to mind all that is maintaining low rates? Contrary to what many people believe rates are not solely determined by the creditors. U.S. dollar and our global economic status will determine if the rates be.American Mortgage Rates at All Time LowThe Federal Reserve responded to the recession of 2001, reducing the lending rate between U.S. Federal Reserve banks. When the economy is strong, rates are increased and also when the economy weakens, the prices are low. It is no secret that our economy is less than booming, that our prices are high unemployment and income levels are low. This means that interest rates on home loans are still at historic lows.Since our economy is still in recovery, the government has promised to keep the main interest rate near zero percent. They predict an increase in i
nterest rates in the near future. However, if this does happen, they are ready to purchase mortgage-backed securities and debt.There no guarantee that rates will remain low, so now is the time to take advantage of these rates, if you are market for a home loan or refinancing your current home. With low interest rates, lenders are competing to provide customer-friendly loan benefits. Whatever your case may be, do not let it pass those rates.