Just in time before the Spring season, the Feds is pulling out of the market. This will affect home buying. The mortgage lifeline is drying out. The Feds been propping the housing market in keeping interest rates low for awhile. But, market haven't fully recovered yet. In Washington DC, 2009 home sales was definitely better than 2008, but it's total number of homes sold still lower than 2004.
These dissenters also warn that mortgage rates could shoot up, perhaps to 6 percent or higher, because private investors buying securities would demand a greater rate of return than the Fed. To reach it, lenders may have to raise rates for consumers.[via Washington Post]
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