Connect with me:
A lot of buyers are trying to get a contract ratified by April 30, 2010 in order to receive the tax credit. I’m recommending that buyers have contracts ratified by mid-March in order to take advantage of these low interest rates!
Many analysts feel 6% 30-year fixed rates are in our near future. Below is a chart that shows how much a monthly mortgage payment will increase between 5% and 6%, and then how that difference adds up over a 5, 10, and 15 year period.
One of the main reasons that mortgage interest rates have remained low is the Fed’s Mortgage Backed Securities (MBS) Purchase Program which is due to end at the end of March 2010. Mortgage interest rates are likely to increase with the ending of this program (“After Record Lows, Mortgage Rates Headed Up in 2010” CNBC). While interest rates will still be historically low, anyone who intends to take advantage of the tax credit should really think about taking advantage of the 5% interest rates as well…before they increase! That means having a contract ratified by the middle of March before the mortgage industry starts anticipating the end of the MBS Purchase Program.
Share: Connect with me:
