The FED is buying mortgages

The FED is going to purchase trouble mortgage assets, which it hopes will ease lending and help put a bottom on home prices. With this announcement mortgage rates have dropped dramatically this past week.

“The rate reduction is exactly what the Fed intended: "This action is being
taken to reduce the cost and increase the availability of credit for the
purchase of houses, which in turn should support housing markets and foster
improved conditions in financial markets more generally," the central bank said
in its announcement."

SOURCE