Is Waiting to Buy Costing you Money?
Is the Window Closing for a 5% Mortgage?
There's still some time to get a 5% mortgage, but that window of opportunity is closing. As of April 1, the government will stop buying mortgage related debt, which may send interest rates to higher levels. Since November of 2008, the Federal Reserve has snapped up over $1 Trillion worth of mortgage backed securities. This has kept interest rates at the artificial lows over the past year. Our rates have been on a 30 year fixed rate from 4.875% - 5.25% range. Jay Brinkmann, chief economist for the Mortgage Bankers Association, has reported that the "buy down" from the government was .4%. It is his prediction that the demand for better returns will surely be seen by a few rate hikes.
How much higher do you think it will go? The experts are reporting that by December rates on mortgages will be between 5.5% and 6%. Brinkman's magic ball projection will be 5.8%.
For the past month, the Realtor's statistics is showing some improvement and stabilization of prices. 
Housing prices are still soft but the decline has slowed way down. If the window of opportunity to lock in a 5% loan is closing and the Buyer's tax credit expires, where then will be housing prices go and how much smaller will the Buyer pool go? 
I'm undecided over these complex issues the market will soon be facing.
