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Home Loan Interest Headed Up |
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Are you a home buyer that will need a loan to buy a home later this year?
You should be aware that The Federal Reserve is preparing to exit a major program that has helped sustain the ailing real estate business, in keeping interest rate low over the last year. The purchasing of mortgage backed securities is a program under which The Federal Reserve has infused $1.25 trillion into the mortgage market and is scheduled to end March 31, 2010.
The talk on the street ranges widely from interest rate increases up to 7% by later this year. The reality is probably somewhere between today’s rates and 7% but anyway you cut it the consensus is... rates will be increasing.
The anticipated rate increases are expected to have a negative effect on home prices as fewer buyers will be able to qualify for home loans.
More information on this subject can be read on the following article:
Mortgage rates poised to jump as Fed cuts funds
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