TAG | home mortgage loan
The Federal Reserve Bank is poised to pull the money off the table that has helped sustain the ailing real estate sector, $1.25 trillion to be exact, by March 31, 2010.
The Federal Reserve is currently winding down its purchase program of Mortgage Backed Securities that has been responsible for the recent streak of the lowest mortgage interest rates on record.
If you are considering a mortgage loan and you are on the fence about when to act, now could be the right time. Rates are not likely to be this low for much longer.
11
Regional Fed Chief Says MBS Purchase Program Should End in March
Comments | Posted by admin in Uncategorized
Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, said the central bank should end its purchases of mortgage debt as planned in March. This program has been instrumental in keeping home loan interest rates at or near the record lows of the last year.
U.S. FED bankers have debated whether increasing and extending asset purchases should the economy weaken, with a few favoring the move and one seeking a reduction in their Dec. 15-16 meeting. They pledged to complete $1.25 trillion in purchases of mortgage securities and $175 billion of agency debt by March. Read More
After housing and mortgage loan applications were up for 5 straight months, it appears that there may be a double dip forming in the housing market. Home Buyers have benefited from the record low interest rates, courtesy of the Federal Reserve’s MBS buying program and the $8000 tax credit. Both programs are set to expire in a few months, leaving the housing market to stand on its own. Read More
31
Mortgage Rates Expected to Rise when FED Stops Purchase Program
Comments | Posted by admin in Uncategorized
According to a recent Bloomberg article, Mortgage bonds are poised to slump after a record rally as the Federal Reserve’s unprecedented buying of $1.25 trillion of the securities ends as soon as March, driving up interest rates on new home loans.
Rising mortgage bond yields mean loan rates are likely to end 2010 almost 0.75 percentage point higher than current levels, based on forecasts for government bonds and spreads, adding to challenges for a housing market struggling to recover from its worst slump since the 1930s.
Existing-home sales rose again in November as first-time buyers rushed to close sales before the original November 30 deadline for the recently extended and expanded tax credit, according to the National Association of Realtors®.
Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 7.4 percent to a seasonally adjusted annual rate1 of 6.54 million units in November from 6.09 million in October, and are 44.1 percent higher than the 4.54 million-unit pace in November 2008. Current sales remain at the highest level since February 2007 when they hit 6.55 million. Read More at Realtor.org.
The trend of rising interest rates appears to be gaining momentum. According to a recent Washington Post Article, Freddie Mac sees rates hitting 6% or above in the next year. If you are considering purchasing or refinancing a home and you are on the fence about your interest rate offer, it looks like the time to act is now. With rising rates, waiting to obtain a home mortgage loan could prove to be costly.
