GDP numbers for the fourth quarter are out this morning, and the economy grew at a surprising 5.7% rate – better than anyone expected! And stocks will open higher, and milk and honey will flow! And, very shortly, singing and dancing will turn to tears.
Why? Simple. The Federal Reserve said again on Tuesday that by the end of March they will have wound down their program to purchase mortgage backed securities. You know, that $1.25 Trillion program that has kept mortgage rates artificially low since December, 2008.
And by all accounts, the Fed has been the majority of the buying market for those securities – buying the paper secured by our homes. When they stop, it will be a jolt to the market and long term mortgage rates climb to the 6.0 – 6.5% range overnight. Some economists predict even higher.
Housing will slow again, and there will likely be another scare in the economy at large. So, if you are in the market to buy a home or have been contemplating refinancing your metro Atlanta FHA loan, then take advantage and lock your interest rate in sometime in the next six weeks. And if you have friends or family in that same position, counsel them to lock now. They will thank you for it!
Check out this short video for a more in-depth look at where rates are headed.
*This is not an offer to lend. 
Obama Refinance Plan For San Jose Homeowners AnnouncedHome Affordable Refinance Program Update Harp 2 Bay Area San Francisco California March 2012 Guidelines for Purchasing a 3 to 4 Unit Property with FHA Financing in Alameda, CA8 Year Fixed to 30 Year Fixed. You Can Choose Your Loan Term In San Jose
