Imagine you have a piggy bank where you save money to buy something you want. The more money you save, the more likely you are to buy what you want sooner. Mortgage rates are similar. They are the cost of borrowing money to buy a house. When mortgage rates are low, it is cheaper to buy a house.

Recently, people think the Federal Reserve, which is like a big piggy bank for the country, might make it cheaper to borrow money by lowering interest rates. This makes people want to buy houses more because it is cheaper. So, the number of people asking for money to buy houses or to change their current house loans has gone up. This is good news for people who sell houses or for companies that help with house loans. Read from source...