Rates to Begin Gradual Climb through 2010

The Fed's recent announcement that it will be tapering off its mortgage-backed securities (MBS) purchase program by the first quarter of 2010 means one thing: mortgage rates will begin a gradual rise back to around 6%.

If you are waiting to purchase or refinance, further delay may mean missing the opportunity to lock-in rates that have remained around 4-5% for much of the year. The MBS-purchase program was designed to help keep rates low, and while this announcement does not mean we'll see a sharp, sudden increase in rates, we can expect a steady climb in rates through the program's end at the beginning of next year. Meanwhile, inventories of unsold homes have fallen to their lowest levels since April 2007, as more buyers move to take advantage of the current low rates and the government's $8,000 first-time buyer tax credit. Due to this refinance boom our team is originating mortgages with all major lenders.

If you are currently debating whether to purchase or refinance a home? Call me today, and let's discuss your situation to see how can help you take immediate advantage of the opportunities that exist in today's market.