Beware of Rising Interest Rates...
This past Wednesday the Federal Open Market Committee announced they were going to extend the time frame of buying Mortgage Backed Securities. There was speculation about the Feds increasing the amount of buying above the $1.25T committed to and yesterday’s statement is a nice way of saying “no.” They will not be buying more, but what they will do is attempt to provide a smoother transition to normal market conditions.
It is a given that once the Fed ceases it purchases, that interest rates will climb significantly higher . . . most likely back above the 6% area.
What this means for rates in the short term in we should see a gradual rise in rates over time. While we won’t be seeing a sudden jerk in higher rates when the Fed buying program comes to an end, it is clear that rates are now going to be on a gradual rise . . . and waiting to purchase ore refinance will mean a higher interest rate.
Thus if you are considering a purchase, here is another good reason to get started. Call me or email, and let's get going for you! Liz 805-801-5529 cell