Utah Rates, Programs, Purchases or Refinaning by Utah's Mortgage Guy

Thats right!!!  Anyone who is planning to take advantage of the $8000 tax credit from the IRS must close on their home by November 30th 2009.  This tax credit is for anyone who has not owned an owner occupied home in the previous 3 years from the day they close.

Yes there is a good chance that some type of extension of this program will be implemented in the next 90 days it is far from a guarantee.  So if you or someone you know has been sitting on the fence have them call me today.  

RidgeView Mortgage is offering 15 year fixed rates as low as 4.25% and 30 year fixed rates as low as 4.75%.    So with these great rates, low home prices, and an $8000 tax credit from uncle Sam this is without a doubt the best time ever to buy your own home.  Call me today 801-253-HOME.

I hope many of you now understand that mortgage rates are determined by the price of Mortgage Backed Securities (MBS). They are NOT determined by the Federal Reserve, the Federal Reserve sets a whole different set of rates for example banks offer each other for bank to bank loans.

So will rates go up? Yes.

So what is going to cause these historically low rates to go up?

It is simple; the Federal Reserve has been using government funds to buy Mortgage backed securities at the rate of about $20,000,000,000 (yes 25 billion) per week for the lat 10 months. Well the piggy bank is running out and instead of just purchasing MBS at he same rate until they run out of money they announced last week that they are going to taper the amount purchased slowly until the entire 1.25 TRILLION allocated is gone.

What does this mean for rates?

Rates will start rising and I am predicting based on historical numbers that we will see rate go up .5% by the end of the year and another .5% by the end or March which is about when the feds 1.25 TRILLION dollars set aside for the purchase of MBS should be depleted.

So get those refinance loans submitted today because this truly could be the end of ALL TIME LOW RATES.