For all the Home Buyers sitting on the fence waiting for property values to decline, down to the last penny, you should be watching the Fed and it’s plan to stop buying mortgage back securities at the end of March, 2010. Since last year, the Fed has pumped over a trillion dollars into the purchase of mortgage backed securities to keep interest rates low for home mortgages. Because the plan to purchase these securities ends March 31, 2010, financial gurus think that interest rates will go higher because the demand for these securities will drop.
My friends over at Keeping Current Matters has a great breakdown of the arguments of what might happen to rates.
Fed Mortgage Backed Securities Purchases by Month
