Franklin Financial Group Blog

There is no way to predict with complete certainty when mortgage rates will rise. Recently however, the Fed has announced that while it will not increase the quantity of MBS purchases, it is planning on extending the end date into the first quarter of 2010. The greater the amount of MBS purchases that take place, the lower interest rates will go. It makes sense therefore that as the Fed slows its MBS purchase quantity to eventually fulfill the program, that rates will begin to move higher. There have been signs and announcements recently that the economy is improving which could normally cause a rise in mortgage rates. With inflation remaining down, mortgage rates have also remained quite low.

While guidelines remain stringent to qualify for a mortgage loan, now is still a great time to refinance or purchase a home and take advantage of such low interest rates. With the deadline of the $8,000 first-time homebuyer credit program approaching, there is even greater incentive to act sooner than later. Private Mortgage Insurance (PMI) companies have begun to loosen their restrictions in some areas, thus allowing for insurability on higher loan-to-value (lower down payment) loans.

If you have been considering pursuing mortgage financing, you should contact a mortgage professional to discuss all options available to you at this time.