TOM PLANT'S HOUSTON REAL ESTATE BLOG

Federal Reserve Bank of New York President William Dudley says the central bank will scale back its purchases of mortgage-backed securities late next month. While interest rates likely will climb when the program ceases, the extent of the rise remains to be seen.

Dudley says the Fed will act if rates spike too much. Still, analysts worry that the end of the MBA purchase program and expiration of the home-buyer tax credit, along with higher premiums and tighter underwriting of FHA mortgages, will work together to stifle home sales and price stabilization in the coming months.

Source: Inman News (02/08/10)

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Tags: Home Buying, Home Selling, Houston Texas, Mortgage Interest Rate, Tom D. Plant, Tom Plant

This entry was posted on Monday, February 8th, 2010 at 1:49 PM and is filed under Houston Market, Mortgage Rates. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.