Fed Ending Low Rates

It’s true – and it’s big news to buyers, sellers and everyone in the real estate and mortgage business.

This time last year 30 year fixed interest rates were at 6.25%.  Then The Fed stepped in the Tuesday before Thanksgiving and decided to subsidize those higher rates with a whopping 1.25 Trillion dollars.  It’s those dollars that have yielded us these SUPER LOW rates we’ve gotten so used around the 5% or below mark ever since.

Well, that time is about to end.  Come March 2010, we can all say good-bye to that program AND to 5% rates.  The rates are being held at an artificial level by the purchases the Fed has been making with all that money and when they stop… That’s it. Guaranteed.

On a $600,000 purchase mortgage, the interest rate difference translates to a monthly increase of over $450 a month to a new buyer. That can make the difference between seizing an opportunity or losing one.

Do you know what the Cost of Waiting might mean for you?  If not, feel free to email or call me.