Juicy Estates: Mortgage Blog

End of Fed MBS Program Doesn’t Mean Higher Rates

The real estate world is buzzing with talk of higher mortgage interest rates as a result of the end of the Fed’s mortgage backed securities (MBS) purchase program.   The Fed has spent $1.25 trillion dollar in this program to keep rates low and now that the program has come to an end private sector investors are picking up where the Fed left off.

I expect that conforming interest rates will only rise .125 to .375% in the coming weeks which is certainly nothing to panic about.   Does anyone remember where conforming 30 year fixed rates were in 2007….about 6.5% or more than 1.5% over their current levels.

Rates are (and will remain) low through the end of 2010, prices are down and we have an excessive amount of money to lend.  Mortgages, especially jumbo mortgages are easier to get today than at anytime in the past 3 years.

It’s a great time to buy and it’s a great time to be in the real estate business.

This entry was posted on Thursday, April 1st, 2010 at 6:53 am and is filed under Home, Interest Rate Updates, Mortgage News. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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