Wednesday, April 14, 2010

Fed Stopped buying Mortgage Backed Securities ; What happens to Mortgage Rates now?

Mortgage Rates took a major beating last week after the FED officially stopped buying mortgage backed securities. If last week was any indication this is not going to be a slow rise in interest rates as a lot of experts had predicted.

From what I've seen so far, we are definitely looking at mid to high 5% by the end of the year, if not higher.

If you we're looking to buy a house and had a Pre-Approval done, it may be a good idea to get it reviewed again by your lender. An already .25% increase in rate means that you may not qualify for the same amount of mortgage that you did 1 or 2 weeks back. And, if you are looking to refinance, your opportunity to get a low rate may be limited.

If you like to be updated on the mortgage market on a daily basis and hence the mortgage rate market is moving, follow my blog.

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