Here is a word from Tahoe mortgage broker, Norm Hansen, on the future of interest rates:
Rates are still at an all-time low … but … we expect some changes in the 2nd quarter.
I have reported on the effective job the federal government has been doing in keeping rates low by buying mortgage backed securities … to the tune of $1.25 trillion.
That $1.25 trillion runs out at the end of March 2010 … which means if the other markets do not pick up the difference in purchasing, then rates will most likely increase. To what extent, we do not know. We do know the goverment is aware that these low rates have had a very positive impact on recovery and are sensitive to it. We await word if there will be further participation and/or impact from the goverment.
If you are rate sensitive to a refinance or a new purchase, a call to action may be prudent. As always, we like to take a positive approach … but this is something we do see on the horizon.