Tuesday, January 5, 2010

Interest rates predicted to reach 6%

Interest rates are likely to rise to 6% by the end of 2010, predicted Amy Crews Cutts, deputy chief economist at Freddie Mac.

The end of the Federal Reserve program that buys mortgage-backed securities will drive rates higher because private buyers will demand more return than the Fed.

"Extraordinary resources have been put into keeping the rates down and supporting the mortgage markets and it's hard to imagine that the rates can go much lower than they are," Crews Cutts said. "Anything we get at or below 5% is a gift at this point."

Source: Washington Post

So, don't wait.  If you are planning to buy this year.  Do it now!!  Rates are hovering around 5%.  You can get a lot more home for your money with a lower interest rate.  In northern Cincinnati including Mason, West Chester, Maineville, Loveland - Call Sibcy Cline Realtor Michelle Sloan for the latest and best information regarding real estate in the area.

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