CA Mortgage Situation

If you’ve been shopping for a Long Beach CA Mortgage, then you need to pay close attention to this post.

You probably heard about the Federal Reserve’s program to buy $1.25 Trillion in Mortgage Backed Securities earlier this year, right?  Right after it was announced home mortgage interest rates took a BIG drop and the continued buying by the Fed has keep rates artifically low.

Well the party is about to be over.  While the program last until the end of the year, the purchase of long term Treasuries ends the end of  October.

So What?  What does this mean for you, for friends and my industry.

It means that the governments huge spending program that has artifically kept rates low is ending and that means that rates are going up soon.

Too many times in the last year have people listened to the media about 4% or lower rates coming to them, passing up the 4.75% that was available, and it is about to happen again.  We are in the low 5% range now, but once the mortgage bonds are being bought and sold on the open market without government intervention, those rates will rise, probably 1-2 percentage points.

So if you’ve been looking for a Huntington, Newport, or Long Beach or Newport Beach CA home and need a mortgage, then now is definately the time to buy so that you can lock up these low rates now!

As you know, I work exclusively on referrals.  The best part of that is that the money I save in advertising can be filtered back to my clients in the form of lower fees.  So if you or someone you know is looking for Long Beach CA mortgage and need help putting together a plan, then give me a call or shoot me an email.