So the Fed has decided to stop buying mortgage backed securities at the end of the month as part of the Stimulus Package. What change will this decision bring? HIGHER INTEREST RATES! While they decided yesterday to keep the short term rates the same, that should help us to continue to recover with fears of inflation being low currently. When we think about what has been going on in the housing market over the last few months two things come to mind, Tax Credits for First time buyers and historic low interest rates. Both of which are going to end very soon! Don’t be left out.
As we sit here today rates are still hovering around 5% and we have about 45 days left till the Tax Credits for First time buyers are comes to an end. Predictions are that the interest rates are set to climb about .5% in the next few months as referenced in the diagram below. What does that do to your ability to purchase? Let’s take a look.
We have seen a huge increase in the number of buyers out looking for new homes. In the Loudoun County area, Markets in Leesburg, Ashburn, and Sterling are suffering from lower inventories. If the propeties are priced right and in good condition they are selling with multiple offers again. In one instance just last week, I submitted an offer for a client for a great property, it had 15 offers submitted when it was all said and done! Signs of times or just a blip in the market? You tell me!
There will be more and more properties coming on the market soon as we creep closer to Spring this market attractive. In my mind the time has never been better to either sell your home or to buy a home in the most recent months.
Let’s get out there and help you take advantage of the Market of the Moment!
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