Real estate investors are getting some more good news. It’s now cheaper to finance an investment property than it has been in nearly two years and mortgage markets are just 20 basis points away from record lows. That’s right, record lows. According to Freddie Mac’s weekly mortgage rate survey,stocks slide the 15 year fixed rate for a primary residence logged in at 2.98% and if you pay a discount point or so that same rate can be had for a rental property.

Note these are averages and with a bit of shopping around you can likely find even better financing packages. What’s going on? Weren’t investors bracing for interest rates approaching 5.00% now that the Fed ended QEIII last fall?

That was the general consensus after all. Monthly purchases of U.S. Treasuries and mortgage bonds kept prices up and yields low and once the Fed exited the program it was thought, naturally, fewer purchases would raise rates. The Fed did indeed stop buying but it appears more money has flowed into such assets as really one of the safest havens around the globe. Slower economies have caused commodity prices to fall. Countries which rely heavily on oil are taking a beating and there is no collective agreement among producers to keep production at levels sufficient to keep prices closer to the $100 bbl mark. Wall Street has also shed some value over the past couple of weeks but hasn’t had the sort of collapse seen elsewhere.

This confidence and security in mortgage bonds has driven consistent, demand driven purchases keeping rates low and at this rate there really doesn’t look like too much to derail the bond rally. If in fact the 10 Year Treasury and FNMA bonds continue to perform well over the next several weeks, we could be setting records once again. That provides opportunities for real estate investors to refinance existing notes, buy and finance more properties and put more people in homes as rates make home affordability easier to achieve.