Since the passsing of Obama's stimulus package, one of the actions taken was the Fed's move to purchase $1.25 TRILLION in mortgage backed securities. That action was taken to solidify the bond markets, ultimately making sure mortgage interest rates remained stable and low.
The action was successful and, as we know, interest rates have remained very low throughout the year. HOWEVER, THE FED'S PURCHASE PROGRAM IS ENDING!! By March of 2010, the program expires and the 'true' market reaction will hit, almost guaranteeing higher interest rates. In fact, beginning the last couple of weeks, the market is already gearing up for the Fed's phasing out of the program and bond prices have steeply reduced, increasing rates up to 1/2 of a percent so far.
If you are a consumer looking to capitalize on low home prices coupled with low interest rates, NOW IS THE TIME TO ACT! Rates will most likely not come back down for years. Don't miss out on this opportunity!
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