Here Comes The Mortgage Increases

Here comes the begining of the increases in mortgage rates. Don't look now but the Fed is not going to support lower interest rates. On Wednesday the Federal Reserve said it was slowing the pace of a program to lower mortgage rate and prop up the housing market.



The Fed decided to stretch out its goal of buying $1.45 trillion in mortgage backed securities. Fannie Mae, Freddie Mac and Ginnie Mae until the end of the first quarter of 2010. The Fed Chairman Ben Bernanke and his colleagues believe the recovery is here.



The Fed must control inflation. There for the believe that they must pull back and that will cause the mortgage rate increases so here it comes. When the interest rates increase they do so at a rapid rate and they tend to fly up. So now before we actually start to climb up is the time for sellers to sell and buyers to buy.



The good news is that the Fed did hold the target range for its key bank lending rate of between 0 and 0.25%. So my conclusion over all is HERE COMES THE MORTGAGE RATE INCREASES.

Tim Lorenz

Instant MLS Listings & Free Market Analysis

"We have actually closed many short sales!"

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