Where interest rates are heading.................!
What does the future hold in store for us with interest rates? The Fed will stop purchasing MBS (Mortgage Backed Securities) in March. The impact on interest rates and bonds is quickly coming. Rates will go up! The Fed has been purchasing MBS holding rates down, once the FED stops rates will go up.
To see the impact on bonds with the Fed purchasing MBS and ending the purchases of MBS watch this quick video.
If you are planning on purchasing a home or waiting to re-finance you need move quickly.
If you are planning on selling your home in the Bay Area react soon before rates go up and a smaller pool of buyers is available.
The picture being painted is much rosier than our recovery actually is. Improvements have been seen, but high un-employment & solid market improvement over a longer time frame will indicate we are out of the woods.
Have a great weekend!
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