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 April 08, 2010

OBTAIN YOUR MORTGAGE NOW, PRIOR TO A RISE IN RATES
For nearly a year now, the Federal Reserve has been purchasing securities that are backed by mortgages and are guaranteed by Freddie Mac and Fannie Mae, which has greatly helped to keep mortgage interest rates as their current low level. For the last year and a half, these low rates have meant that borrowers would have to pay less each month. The Fed says that, as of March 31, their buying of these securities will end. It is probable that interest rates may go up a bit by the latter part of the year.

Many home purchasers are anxious to have a property in escrow before the federal tax credit comes to an end on the last day of April. The discontinuation of this credit, along with the probable rise in interest rates, makes buyers want to hurry up their purchases, as they are afraid of no longer being able to afford a home.

If you are considering buying a home, especially if you are a first-time buyer or a move-up buyer, there may never be a better time to do so. Mortgage interest rates are still at historic lows and the tax credits are still available. However, time is of the essence.