Thursday, February 11, 2010
Here's a good article from the business section of today's L.A. Times. In essence, it says that the government is going to stop buying mortgage bonds in March. That will likely have the effect of pushing interest rates higher. And we know what happens when interest rates go higher -- less people qualify for mortgages and homes sit on the market longer and sell for less. Here are a couple of quotes:
"The Fed plans next month to end a $1.25-trillion mortgage-bond-purchase program that has helped keep mortgage interest rates near a record-low 5%...That exit is expected to push up rates, which could weigh on buyers at a time of high unemployment and anemic consumer spending." And "If those rates jump up to 5.5% or 6%, then [buyers] can't qualify for what they thought they could qualify for, and they're not going to be able to buy as much house as they thought they could."
If you're a seller, now may be the time to list your home.