Thursday, January 28, 2010

First Time Home Buyer's Are Buying Homes!

According to the National Association of Realtors profile of home buyers and sellers, First Time Home Buyers reached the highest market share on record in 2009. First Time Home Buyer's bought 47% of homes purchased, the highest percentage since 1981.

I've gathered a lot of experience over the years. And I'd like to share it with someone ready to buy their first home. The $8,000 tax credit is soon to expire with a scheduled date of April 30, 2010 as the deadline for a home contract and June 30, 2010 as the closing date.

MBS purchase program to end March 31, 2010

Yesterday, the Fed confirmed that its Mortgage Backed Security purchase program will end March 31, 2010. This announcement was expected, however, there WAS a chance that the program would be extended or expanded but this hoped for extension did not happen.

What this means for Mortgage interest rates is that without the extra demand that the Government has created for Mortgage Bonds, we could see a fall in Bond Prices and an increase in Mortgage rates beginning in April.

I will keep you posted of additional market news affecting mortgage rates.