Mortgage rates drop, home prices rise

(CNN) - For those looking to buy a home, now may be the best time.

Mortgage rates have hit their lowest point this year, and home prices are slowly on the rise.

The average rate for a 30-year loan dropped to 4.1 percent this week.

Rates for 15-year loans also slipped. That's the lowest level for mortgage rates this year.

We're now approaching numbers we haven't seen since June 2013, when rates were below four percent.

You can thank the fed reserve's buyback program for keeping borrowing costs down.

The fed's purchase of treasury bonds have provided a steady market for mortgages.

However, the fed is cutting back its purchases which should eventually cause rates to climb again.

But for right now, things are looking good for buyers.

Not only are mortgage rates slowly climbing, so are home prices.

And a growing housing inventory - not to mention a stronger job market - are giving buyers more options.

And the data is starting to show it.

More than 5 million existing homes sold in July. That's the highest level in more than ten months.

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