We have all been hearing the news...
The Fed plans to end their mortgage-bond-purchase program that has helped keep mortgage interest rates low in the next month. The Fed has been buying the mortgage bonds being put out by Fannie Mae and Freddie Mac, replacing private investors such as pension funds and mutual funds that have avoided bonds since the subprime mortgage crisis. This is why interest rates have stayed low all year. Once the Feds stop buying, everyone is expecting interest rates to rise.
The question on everyone's mind is - will the push up of rates stimey buyers from buying homes at a time when buyers are worried about unemployment and the economy as a whole. Even a moderate rise in the mortgage interest rate could push potential buyers out of the market and/or worse cause home prices to fall again.
For homes buyers in Ashland this could mean about about another $100 a month added to your monthly mortgage payment.
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