As the Federal Government winds down its plan to keep mortgages rates down, we can expect these rates to begin to rise. The government set aside 1.25 Trillion dollars a little over a year ago and was able to “buy” mortgage rates down by a full percent from their current levels at that time. The 30 year fixed rate has been at 5.00% for the last 14 months plus or minus a .25 on any given day depending upon economic news. With this purchase plan coming to an end, we can expect rates to increase to the levels they were at prior to the plan. The 30 year fixed rate was at 6.00% in October 2008, and reached a high of 6.625% that summer.
Have you refinanced? Are you purchasing a new Home? If rates rise as they are expecting, the tax credit will be worth pennies on the dollar.
Do want to know more about the direction of mortgage rates? Feel free to email or call me anytime.
Bill Nickerson
Vice President Mortgage Network, INC
179 Great Road, Acton MA 01720
978.264.4803 (o) 978.273.3227 (c)
Providing Mortgages Since 1991
Commercial Residential Reverse FHA/VA
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