There's been some speculation that the FED exit of the Mortgage Backed Security Market will cause a spike in Interest Rates, and a downturn in the housing market... not so says Forbes Magazine. According to article, the exit of the FED is not going to HELP the Housing Market... but they point to encouraging signs that should keep us from going into that dreaded second dip.
- The FED is not likely to SELL all of those Mortgage Backed Securities anytime soon. The sale will likely be the next thing that causes mortgage rates to SPIKE. We've had a 1/4 to 3/8 rise in rates since the end of March (when the Fed stopped buying mortgages)... and we would likely see another 1/2 increase in rates (at least) if they began dumping them on the Bond Market. There are several large sales this week, so we'll see if this theory holds. (Click here for FOMC Meeting Notes)
- The Foreclosures are Coming! The Foreclosures are Coming! As noted by CNBC yesterday, there's a massive number of foreclosures hitting the market in April (near end of month) and these homes will require new financing... meaning this should increase the number of sales (I get fuzzy on this line of thinking) should go up 10% year over year because of the number of foreclosures on the market.
- Home Depot is Hiring! This must mean that people are fixing houses, and spending money on the houses - so this is GOOD NEWS! Right? Creates jobs, creates more orders for windows and siding and air conditioners!
Again, I don't know about all of this theory - but I DO KNOW this...
The Triangle is growing so fast that it could eclipse Mecklenburg County (Charlotte) as the County with the largest population in North Carolina. Charlotte has looong been the biggest magnet - and that switch to Raleigh only helps our housing picture. We never had the huge "highs" of other markets, we never had the huge LOWS that other market had... and I believe NOW is the time to buy in the Triangle!
If you are considering a purchase in North Carolina, or want information about USDA Home Financing (or the best mortgage interest rates around) call Steve and Eleanor Thorne, FFSi - a North Carolina Mortgage Banker. 919-649-5058