I spoke too soon…I do have something to report!
According to the minutes of the last Federal Reserve meeting, the Fed is going to stop buying mortgage back securities in March 2010. That means the lovely, low interest rates of the past year will be long gone. There’s many news items about this development but this article explains it well: “D-Day for Low Mortgage Rates?”
When I was at my team luncheon on Monday, we asked our broker Ricki Gerger, what interest rates were when she started in the industry. Her answer: 16.5%! Seriously!
The interest rates are expected to go up when the Fed stops buying the mortgage backed securities. Historically, anything below 7% is considered to be a good interest rate. Keep your eyes peeled for more items in the news about these developments.