Pending Home Sales

Wow! The tax incentives have caused a flurry of Pending Home Sales in the Sacramento Metro area. Check out the graph... You have to be in contract no later than tomorrow (4.30.10) and escrow closed by June 30 to take advantage of the Fed's tax incentive.

Cheers!

Kev
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Rates are Moving Up!

Federal Mortgage Buy Back Program Ends - Interest Rates Are Moving Up

March 31st was the last day of the Federal program to buy mortgage backed securities. That is the program that has been removing the bad loan debt from the market at an enormous rate. It’s been going for well over a year now, and we know it’s been keeping mortgage interest rates artificially low.

Yesterday was the first day without this program in effect, and guess what?

We are already seeing rates jump. Yesterday they went up a quarter of a point.

Overnight? Some rates aren’t even available now. A few days ago, a client could buy down a rate to the low 4 percents. Now? We can’t even get access to those low 4 percent rates. Buying down will get you into the mid or high 4 percents.

Hmmmm.....

While movement on any day is expected, the move by the Fed in general is signaling that interest rates are going up.

While we have all expected this, to what degree they will change (go up) is anyone’s guess.

Buyers? Be alert.

Re-financing? Get busy.


Kev
- Posted using BlogPress from my iPhone