The Fed Bond Buying is slowing down

The Fed Reserve tells us repeatedly that their massive purchasing program of Mortgage Backed Securities is just about over which translates to home loan rates rising in the near future.

Last week, the Fed purchased $11 Billion in Mortgage Backed Securities, which leaves them with $66 Billion to spend out of
their original $1.25 Trillion allotment. So about 95% of the total has already been spent and has purchased about 3 out of every 4 home loans during the past year. When such a large buyer leaves the market, it is very likely that prices will worsen.

This is very important because as the Fed has less money to last through the remaining months of the program, their ability to keep home loan rates low via their purchasing power will wane. And those who can take advantage of currently low home loan rates do not wait, as the clock on these historically low rates is ticking.

Also the 8K Tax Credit is nearing it's deadline too.... Any Questions...? feel free to contact John.

John Curci RE/MAX Properties 215-968-7400-x 8774 or DIRECT- 1-866-473-6290

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