Many had thought that once this occurs, mortgage rates would rise quickly. That sentiment is not held by many economists who feel that there is significant private investor demand that will take place. Additionally, the Fed has no immediate plans to sell off the bonds it’s purchased.
Mortgage rates are historically low hovering around the 5% mark. It is expected that they will rise slowly by the end of the year, but we are only talking about ½% increase. Additionally, there is always the possibility that if the private sector does not act as expected, the Fed cause always intercede again.
The Fed wants to keep rates low considering our slowly recovering economy, high unemployment and they want to control inflation.
For some background on the Fed and Mortgage Backed Securities, click here!
For information on Orlando real estate and Orlando homes for sale in addition to Orlando relocation contact Marc Grossman, your Greater Orlando Area Realtor @ 407-463-1034. Additional information is available for Seminole County real estate, Orange County real estate, West Volusia County and South Lake County.
To learn more about Marc and the services he has to offer, visit his website.
Marc Grossman, GRI - http://www.OrlandoHomes-4u.com/ - 407-463-1034
You can read Marc’s other blogs Real Estate Morsels, Real Estate Off The Leash & Real Estate Cracker
Marc donates 10% of his net proceeds to Hospice of the Comforter.
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