The Money Runs Out Today

By
Real Estate Agent with Realty Executives Associates 00292515

I have been hearing for months, now, that the government money pumping up the lenders runs out on March 30, 2010. We have lived with these low interest rates for so long that it seems as though it will be forever. How well I remember the high interest rates of the 1980's, because that is when I bought my first home. During those times, a 7% interest rate seemed like a steal. Now, we are used to 4% and 5% loans, and it has lasted so long. We knew it had to end, but the reality just hasn't sunk in.

Yesterday, I was meeting with a lender with one of my clients, and he said, "It ends tomorrow." The reality finally hit me at that moment, sort of like waking up from a dream.

Please, buyers, get out ASAP. Call your favorite real estate agent, today. Find your dream home, and take advantage of those credits (first time homebuyer credit or the move up credit), if you can, and the low interest rates. As of today, they start going up for real.

Cathy Glass, Realty Executives Associates, 865-693-3232

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Linda Graves Arnold 03/31/2010 01:58 AM
Tags:
interest rates
first time homebuyer credit
move up credit

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Rainmaker
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Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

We have had it good for a long time Cathy, spoiled by rates in the 5's.... we will probably still be in the 5's after uncle sam steps away, but it could be higher 5's ... it all depends on how healthy the MBS market is and how willing investors are to put their money into Mortgages. 

By the end of today Uncle Sam will own $1,250,000,000.00 in mortgage backed securities... Scary number, isn't it?

Mar 31, 2010 01:57 AM #1
Rainmaker
208,718
Cathy Glass
Realty Executives Associates - Knoxville, TN
Realtor - Knoxville, Tennessee

Isn't that the truth, Robert. I hope lenders are able to keep rates low, and the buyers realize what a once in a generation opportunity they have.

Mar 31, 2010 02:31 AM #2
Rainmaker
4,270,911
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Interesting, I had not heard that!   Have sent an email to my lender.

Mar 31, 2010 03:23 AM #3
Rainmaker
779,077
Robert Rauf
HomeBridge Financial Services (NJ) - Toms River, NJ

Cathy, a little added fun: The average rate for the past 20 years; 7.47%  add 2% and you have the average rate for the  past 40 years.  We have been spoiled with low low rates for a long time.

Apr 01, 2010 03:41 AM #4
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Rainmaker
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Cathy Glass

Realtor - Knoxville, Tennessee
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