Record Low Mortgage Rates May Not Last Long
Interest rates for home purchases have reached their lowest point in history, but how long will they remain at those levels? Regarding this question, the California Association of Realtors distributed this item to its members:
”The Federal Reserve’s announcement that its purchasing up to $500 billion of securities backed by Fannie Mae, Freddie Mac, and Ginnie Mae, has contributed to a reduction in mortgage rates to record lows. However, some mortgage experts warn that the low rates may not last long and could actually rise as early as this summer.
According to Celia Chen, senior director of housing economics at Moody’s Economy.com, in the second half of this year, the Federal Reserve’s program will have run its course and other issues will move to the forefront, which could push mortgage rates higher.”
Go to Reuters to read the full story.