One contributing factor to the continuation of low interest rates available in Cochise County is the Federal Reserve’s purchase of mortgage backed securities. But speculation abounds on what will happen when the $1.25 trillion program comes to its scheduled end in March, 2010.
The consensus opinion is that the program will be extended. Unemployment is not expected to have recovered much by then and with foreclosures continuing (see our post on the number of mortgages "Arizona Underwater"), the FED will very likely extend the program. And when the program does eventually wind down, the expectation is that rates will only go to a level between 5 and 6 percent.
You can read more on this topic in an article published today by Lisa Scherzer at SmartMoney.com.
Don Grafues
Resource: SmartMoney.com
Resource: SmartMoney.com
