Convincing a buyer to buy now is like telling someone they would like a root canal. Buyers feel rates will drop to 4% and that prices will still go lower. Some person who works at the cube next to them (this person is not a Realtor) tells them they know it will get better. What they forget to tell the buyer is that it could not be as good tomorrow. The Fed's are offering words that sound encouraging at first reading. They are buying Mortgage Backed Securities. Some feel this program will mean lower interest rates. On second reading you will see they are buying FNMA 30 year 5.5% and 5.0% bonds, which don't have much of an impact on present interest rates. Go to
and learn more. With rates at present low levels, many of the mortgages in these FNMA 5.5% pools are being bought up by the Fed and will be refinanced and paid, thus giving the Fed a quick recoup on some of their investment. This action most likely will not reduce the present interest rates that are very good. Waiting for the rates to drop on a loan today could mean saving $30.00 a month. Waiting could mean rates could go up and that qualifying could get more strict. Now is the time to buy. Yes You Can.
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