Mortgage lending rates for home financing continue to stay at historical lows, with increased activity and loan execution occurring as the industry finds ways to lend even with tighter credit restrictions. The mid-October average 30-year fixed rate performance hasn’t changed much in the way of the rates being used going up or down. However, costs have decreased as closing expenses have been lowered and lender credit tolerance has increased.

All of the above said, rate watchers are noting that the mid-October rate performance can still be influenced financial news coming out in the second half associated with Quantitative Easing 3. Because this factor is still in play, rates could move again.

From the lender perspective, the current rates average of a 30-year fixed loan of 3.375 percent is slightly improved from earlier in the month in terms of earning power. There doesn’t seem to be much in the market right now that would sustain any kind of a rate increase drive anytime soon. Additionally, 15-year fixed loans are even lower, pegged at 2.875 percent. As a result, many watchers are pessimistic at the moment.

For home buyers the sustaining of the low rates continues to be good news. For lenders, on the other hand, the days of much higher profit on the same loans is still somewhere far off in the future, if at all. However, what continues to stymie everyone is the continuing cold freeze on lending, still reacting to much of the liberal lending that continued until 2008.

So prognostications on whether mortgage rates will rise again don’t have much support right now in October 2012. Further, the Federal Reserve also made it clear in September it had no plans in raising its own rates to banks, another driver that affects the mortgage market as well. However, what could cause a shift may be the Presidential election coming up in the next two weeks. Depending on the outcome and how may be voted in as the next President, simple market optimism could result in a short-term change in rate behavior as well as other aspects of the financial markets.