Next month the government will stop buying mortgage-backed securities. Many of those securities on the market still contain toxic assets, and experts are divided on whether there's enough demand in the private market to support the sale of those securities. Remember that the securities include many mortgages packed together, and banks need them to be purchased so they can regain the capital and issue new mortgage loans.
So what does this mean for you? Depending on how this plays out, we could see some substantial interest rate hikes. Because it will take weeks to really see what direction this will take, there is still time to lock rates at today's 4.9+% rates. Are you on the fence about whether to lock now? Call Paul Zabal with Elite Financing today, (512) 663-0043.
See this Reuters story from today - - -
http://www.reuters.com/article/idUSN2616224220100326