Housing Forecast
In the next several months, the number of houses in the U.S. will remain relatively constant. Few houses will be destroyed, and even fewer will be built. Rarely has history seen such a stable housing environment.
Rumors abound that 30-year mortgage rates may bottom out as low as 4.5% in June 09, when the Federal Reserve expects to finish buying about $500 billion in mortgage-backed securities. So far, the Federal Reserve has bought at least $10 billion in securities under this program, and long-term interest rates are already falling.
Now is a good time to start looking for a house to buy. Housing prices will continue to fall precipitously through March 15, and then will begin a quick recovery. But even as housing prices rise, long-term interest rates will continue to fall through at least June. For an ideal mix of moderate home prices and low interest rates, aim to seal a house deal near the end of April.
Rumors abound that 30-year mortgage rates may bottom out as low as 4.5% in June 09, when the Federal Reserve expects to finish buying about $500 billion in mortgage-backed securities. So far, the Federal Reserve has bought at least $10 billion in securities under this program, and long-term interest rates are already falling.
Now is a good time to start looking for a house to buy. Housing prices will continue to fall precipitously through March 15, and then will begin a quick recovery. But even as housing prices rise, long-term interest rates will continue to fall through at least June. For an ideal mix of moderate home prices and low interest rates, aim to seal a house deal near the end of April.
posted by My Freakwentness at 10:48 AM
1 Comments:
March 15?! That was when Julius Caesar was killed. Hmmmm.
And say, it looks like we might be following your advice by default! -CP
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