I know I've been preaching for months about it being such a great buyers market with all the inventory and low interest rates and that if you're planning on buying, now's the time.  Well... I'm still saying the same thing. 

I just read an interesting article in the NY Times about how this coming Spring, the Federal Reserve was going to start weaning the securities market off government support.  The Federal Government has spent about $905 billion dollars buying government-guaranteed mortgages in an effort to keep mortgage rates low and will continue buying until it reaches its target of $1.25 trillion.  The result, will be the need for investors to buys these mortgages and since investors want to make a profit,  we will likely see an increase in interest rates come Spring/Summer 2010.  Interest rates are going to have a far bigger effect on your purchasing power than current property values.  For example, a mortgage for $360,000 at 5% would have the similar payment of a $300,000 mortgage at 6%.  That's a HUGE difference.  I'm not saying this to scare you, but to inform you as to what is going on the industry.   Our goal is to have well informed, educated clients.

If you have questions or concerns, please give us a call.  We are here for all your real estate needs.  Melaniecameron@seacoastrealty.com or 910-233-2840

Have a great week!