Good news for anyone buying a house or seeking to refinance a home: Mortgage rates on Thursday hit their lowest levels of the year. According to a report from AP, rates for a 30-year fixed-rate mortgage fell to 4.78 percent, just a bit above their lowest levels ever. Back in December of 2009, rates sank to a record low of 4.71 percent. Rates have been at relatively low levels for more than a year now, thanks to the Federal Reserve.

However, another key factor is also driving interest rates lower. The debt crisis in Europe is spooking investors. So more people are buying safe investments, namely 10-year and 30-year U.S. Treasury bonds.

Mortgage rates tend to move in tandem with 10-year Treasury securities, which are sometimes called Treasury bonds. And when those bond prices rise, as they're doing right now due to strong demand, interest rates fall. What all this means for house-hunting consumers is simple: Get cracking now if you want a mortgage loan at rock-bottom levels.


Sure, the deadline for getting that $8,000 first-time homebuyers tax credit has passed. But if you're truly on the prowl for your first home, you shouldn't only be concerned about a tax credit. Think instead about the prospect of locking in a great rate now -- one that could save you tens of thousands of dollars over the life of a 30-year mortgage, compared to waiting and getting, say, a rate that is 1 percent higher.

Just be ready to go through a rigorous screening process with a lender. As I recently reported on WalletPop.com, there are seven reasons why banks reject mortgage applications. Check out that article to learn what you can do to get approved. My book, 'Your First Home: The Smart Way to Get It and Keep It' also offers tips on making the leap from renter to owner, and for getting free money toward your down payment or closing costs.

As I said in that book, homeownership isn't for everyone. But if you're financially and emotionally prepared for the rights and the responsibilities of being a homeowner, it can be a wonderful experience.

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Lynnette Khalfani-Cox, an award-winning financial news journalist and former Wall Street Journal reporter for CNBC, has been featured in the Washington Post, USA Today, and the New York Times, as well as magazines ranging from Essence and Redbook to Black Enterprise and Smart Money. Check out her New York Times best seller 'Zero Debt: The Ultimate Guide to Financial Freedom.'