Mortgage rates in Orange County remained low this week, even showing some improvement late in the week. Helping interest rates were statements from the Fed suggesting the economy is “strengthening” and that interest rates would remain low throughout the year. At the same time the Fed reiterated its stance on ending the Mortgage Backed Securities purchase program on March 31, 2010. The MBSpurchase program has been credited with keeping rates approximately 1% lower than they would be without the program. Considering interest rates have been hovering in the 5% range, this means rates should actually increase after the program ends, to over 6%.
Expectation for Mortgage Rates Next Week
No matter what the Fed says, analysts and economists will always do their best to interpret the Fed comments. Although the Fed commented that ”rates will stay low for an extended period”, there is expectation by most analysts that mortgage rates will increase, and even that the Fed may begin to increase rates later this year. Before that happen, there is some hope that the Fed will reverse their decision regarding ending the MBS purchase program. That will remain to be seen.
Orange County First Time Buyers Have 91 days to Take Advantage of Tax Credit
Orange County First Time Home Buyers have until April 30, 2010 to get an accepted offer to purchase a home. They then have until June 30, 2010 to close the transaction. Time is running out quickly. Orange County first time buyers who who wish to take advantage of the $8,000 First Time Home Buyer tax credit need to get serious about buying a home now. With mortgage interest rates low and the tax credit still available, there has not been a better time in many years to purchase a home.
Authored by Tim Storm, an Orange County, CA Loan Officer – Please contact me for more information about an Orange County, CA home loan. 877-786-4243 x 7.
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* Licensed by Department of Corporations under the California Residential Mortgage Lending Act. PRMI Branch License 813F487.
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