Come March 31st, The Fed is going to stop buying Mortgage Back Securities.
The Results predicted by many is that interest rates will jump to 6.0 maybe up to 6.5 percent. That may not seem like a lot but that could mean that your mortgage will go up about $120 to $180 per month if you have not locked in a rate or if you are thinking of buying a home after March.
I believe that this will happen to...except can the Fed afford to do this? (That question is for another Blog)
If 10% of the people are unemployed and interest rates go up, then how many people will be able to Buy a home. This in turn could lead to more foreclosures and a greater decrease in home values.
This is not good either. Stay Tuned
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