Dont be surprised if Mortgage Rates start CLIMBING VERY SOON !!!!!
Today I got two emails from clients disappointed that their mortgage rates had just gone up. Their loan officers told them this morning that because they hadnt locked in a rate yet, that today their rate was up about a quarter of a point.
Now while that is not the end of the world, it's still a higher rate than they would have had a little while ago, (and almost a point higher than they could have had a few months ago).
I talked to a number of Loan Officers over the last few weeks and they all seemed to say the same thing, that rates are going to start climbing ... and likely sooner rather than later.
Unhappy Borrower's rate went up today !
I read an interesting explanation for this today in an email from a NJ Loan Officer, and I think it makes a lot of sense. I'm sure my reliable Mortgage officers here on ActiveRain will give their thoughts on this, but here's the basic gist of why buyers SHOULD NOT DILLY-DALLY RIGHT NOW !!!!!!
Apparently last week the Fed bought only $9.3B in "Mortgage-Backed Securities" - typically they have bought twice that amount in the past. With the Fed purchasing fewer Mortgage Bonds and then looking to wrap up that program entirely by the end of March 2010, any rate reductions may be small if at all !
I am led to believe that one of the main reasons that Interest Rates dropped so low in the recent past has been because the Fed has been buying up pretty much ALL the mortgage debt that was being written over the past year !! - this is mainly because there wasnt much interest from any other entities to buy it !!!
Fed Chairman Bernanke said recently that the Fed would DISCONTINUE this practise in MARCH !
... at that point, there is a good chance that rates could go UP significantly.
What this means TODAY is that if you know anyone who is considering buying over the next few months, it may behoove them to scooch their behind off the fence and grab the opportunity now, before rates go up, AND in case possible delays hold up their closing until after April 30th when the TAX CREDIT expires !
Acting now could end up saving your contact thousands of dollars !
Good luck and Good Bargaining out there !!!
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If you, or anyone you know is looking to buy or sell a home in Maywood, Paramus, or any town in Bergen County, give Bergen County Realtor Sheldon Neal a call for unmatched service and assistance !
Sheldon Neal ~ RE/MAX REAL ESTATE LTD.
Cell: 201-481-2891
Office: 201-599-1100
email: SheldonNeal@remax.net
website: www.SheldonNeal.com
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