Let me preface this by stating that I am by no means a "The end is coming! Act now! There is no better time to buy or refinance!" type of a guy. That said, "The end is coming! Act now! There is no better time to buy or refinance!"
:)
In all honesty, we do not know how the MBS bond Market will react at the end of March when the government uses the last of the allotted funds to make their final MBS purchase, however most experts predict the rates will rise. Adam Quinones of Mortgage News Daily goes into an excellent indepth 3 part breakdown on the subject here: http://www.mortgagenewsdaily.com/02112010_fed_exit_mbs_purchase_program.asp
Bottom line if you were asleep through most of 2009 and did not refinance out of your ARM or your high 5%/6%+ mortgage into a loan under 5%,
Or if you qualify and can afford a home, but are still renting, your time to get off the fence
and take advantage of rates under 5% and ridiculous tax credits for home purchases is dwindling.
Also, interesting to note, he predicts many mortgage professionals will leave the industry (I will not be one of them) due to the overall mortgage loan production decreasing by as much as 40% year over year (Allbeit 2009 was a banner year with the historically low interest rates). Most business will come from Purchases in 2010, as most qualified borrowers will not want to refinance out of their 4.xx% mortgage into a rate that may be in the mid to upper 5% range (maybe higher?).
Comments (2)Subscribe to CommentsComment