Better Hurry

Mortgage rates around the 5% 30 year fixed rates are about to disappear. The federal government has spent roughly 1.3 trillion dollars keeping interest rates low as part of its efforts to stimulate the housing market. That program is set to expire on March 31st of this year.

Watch the ten year bond rates to get a handle on mortgage rates. The two do not exactly go together but they do mirror each other.

In the past few weeks, the ten year bond yield went up 20%, from 3.2% to 3.84%. Remember, mortgage rates will mirror that upward trend. A rule of thumb is to add about 1.75% to the ten year treasured bond yield and you would have a good idea as to the mortgage rate.

Buying your home before the end of March makes a lot of good sense:

• A 30 year fixed rate mortgage at 5% to 5.5% interest.
• First Time Home Buyer Tax Credit.
• More Tax Credits for “Move Up” Buyers.
• California Association of Realtors Job Loss Protection program. (It’s Free!)
• On top of that- The lowest prices in many years.

Better Hurry - Time will cost you Big Bucks!