The Government Wants out of the Housing Market

The US federal government is looking to get out of the housing market whether we are prepared for it or not. Actually, the scheduled date of the fed pull out has been narrowed down to be within a few months time.

By this happening there will be an increase in 30-year fixed rate mortgages that will not only raise the cost of the home, but effectively will wipe out any hope of a housing recovery plan working out for home buyers.

In late 2008, interest rates were at record highs (around 6%) so the government had to step in and start buying mortgage-backed securities to try and maintain a healthy market. But now the government is going to stop this because they believe the market is stable enough to survive on it’s own. By doing this so suddenly, many housing advocates and federal officials believe this will make interest rates rise to an unaffordable amount.

The cost of homes is going to sky rocket because of the financial wave of costs associated with home ownership. If you are looking to buy a home, the time to make the purchase may be now because you don’t want to risk the increase of mortgage rates that are soon to come. Otherwise, the cost you will pay for buying that dream home will be higher, and in a lot of cases, more than many people will be able to afford.