The media is blasting the lowest rates in the news and I can see the impact it is making on potential home buyers.  This week alone we received 3 buyer referrals from our past clients.  These potential buyers are very motivated to make a move now as many fear that rates are going to be heading North and when they do go up it happens quickly.

 

There has been published reports lately about the Fed starting to drain money from the economy.  The Central Bank at some point will need to reverse course and start boosting interest rates and removing other supports to fend off inflation. The Fed will sell securities from its portfolio with an agreement to buy them back later.  This is called a reverse repurchase agreement.  This is a tool the Feds can use to drain money it has plowed into the economy to ease financial troubles.  The Central Banks balance sheet has ballooned to over $2 trillion - reflecting the special programs it has set up to spur lending, stabilize banks and to revive the economy. 

 

Many buyers know that this is the best time ever to get a very low mortgage rate.