The Dow broke the 16000 barrier earlier today and made somewhat of a comeback but still closed lower with yet another triple digit loss. And as we’ve been witnessing over the past couple of weeks, a weak stock market means a strong bond market and mortgage bonds are one of the beneficiaries. Forstocks lower bonds better the first time in more than a year, the 30 year fixed rate average moved below 4.00%.

On June 20, 2013 the 30 year rate hit 3.98%. One year ago today, the 30 year rate for an owner-occupied property was right at 4.28%. Rates for investor properties are typically one-eighth to one-quarter percent higher.

Real estate investors have a better opportunity today to invest in real estate as home price gains have slowed and financing costs have fallen. Going into the fourth quarter of this year, investors will see a general slowing in the housing market, keeping prices low and rates subdued.

The stock markets have been taking a real beating as of late and with stocks and bonds running in their more traditional fashion, investors are pulling from stocks and investing in bonds, keeping rates low. Continued, this should keep the Fed further at bay from any rate action until well into 2015. Should the European economy continue its slide as well as China ratcheting down its own GDP expectations, the demand for oil should decrease along with them. Experts are saying that oil under $80 per barrel will have a negative effect on the U.S. economy as oil exports from here will fall.

These events combined are helping to keep mortgage rates low and could in fact continue to fall. The lowest we’ve seen occurred in November of 2012 when the 30 year note logged in at 3.40%, according to Freddie Mac’s weekly mortgage survey.