Houston, TX: The Federal Reserve announced today that it will begin to taper its bond-buying program known as Quantitative Easing (QE). This is the result of our nation’s strength in recovery but bad news for consumers who are certain to see mortgage rates increase. The speculation that the Fed would taper in September 2013 led interest rates to rise by more than a full point over the summer.
The tapering of QE, along with several new mortgage industry regulations (i.e. QM) taking place in January 2014 will negatively impact the borrower attempting to qualify for mortgage financing beginning this new year. Home purchasing power will be greatly affected.
If considering a new home purchase in the Houston Texas real estate market, it is important to know if you are mortgage approved before listing your current home to sell or before seeking to purchase a new home.
More importantly, if you were pre-approved for a mortgage to purchase in Houston Texas prior to today’s Fed announcement regarding QE and the impact this announcement will have in conjunction with the many mortgage industry changes to occur in January 2014, revisit your preferred Mortgage Professional to be sure that your mortgage approval is still valid.