The continual drop in mortgage rates is not necessarily a good sign. It shows that there is high demand from those who purchase the mortgages after they are made and they are accepting a low rate or high price to buy them-- question is why? It also shows that rates ae falling as banks compete for borrowers, but borrowers are not stepping up. The other reason is investors are beginning to seek safe investments like bonds and a move away from stocks as investors are starting to seek safety-- this means a peaking stock market. Mortgage prices rise and rates fall as mortgages are competing for higher demand for bonds.