Both the stock and credit markets got a bit of a surprise yesterday from none other than Fed Chair Ben Bernanke. For those paying attention, the Fed has been investing in mortgage bonds and treasuries to the tune of $85 mortgage rates remain lowbillion per month for some time now.

Quantitative Easing, or QE has been around in some form since the Fed first began to keep interest rates low with monthly purchases since QE first began way back in 2008. That’s a lot of money pumping into our economy.

When the Fed makes these purchases, it supports the price of mortgage bonds which keeps mortgage rates and other interest rates low. The Fed had previously stated they would stop their buying once the unemployment rate hit a certain number then suggested they wouldn’t stop entirely but perhaps gradually pull back their buying, or “tapering.”

Most economic prognosticators thought Sir Bernanke would announce the beginning of tapering but instead announced that the bond purchases would continue as is for the foreseeable future. This announcement pushed long term rates down to levels not seen since early August. Rates had been on an upswing since early last spring and the markets were spooked just a tad. Higher mortgage rates could slow down an economic recovery and halt the housing market’s gains. At the same time, the stock markets benefitted from the Fed’s remarks and not just here but overseas as well.

So what does that mean for the average real estate investor? It means rates should stay low for perhaps well into next year. Lower interest rates mean lower financing costs which in turn produces better cash flow for investment properties.

Low interest rates also means more people can afford to buy and finance your flips. The lower the rates, the wider your buyer pool. We realize the constant din of “low rates, low rates” at some point gets monotonous. But it can’t be expressed enough these rates have on you and your investments. Take advantage of them now.