One of the main reasons mortgage rates are continuing to stay historically low is the Federal Reserve’s $1.25 trillion mortgage-bond-purchase program.  Additionally helping to keep rates low is The Fed’s commitment to buy $175 billion in debt issued by Fannie, Freddie, and Ginnie.  These government stimulus efforts are scheduled to end after March.  But, there’s a chance they could be extended.

According to the Wall Street Journal today, James Bullard, President of the Federal Reserve Bank of St. Louis, thinks the Fed should continue the program in at least a low level.  Mr. Bullard states his position this way:  “I have advocated to keep the asset-purchase program open but at a very low level, and wait and see what happens, and as information comes in about the economy we can adjust that program while the federal-funds rate remains at zero.”  So, low rates may have a life beyond next March.  But, it will take more than one regional Fed Bank president advocating for it.

Here’s the point:  If you have deferred a buying a home because you became wary of the economy, and your credit score is decent, and you have down-payment money, now is the time to end the deferral.  Favoring the home purchaser are: buyers tax credits, low loan rates, and broad selection of homes on the market.  Home prices in Ada County have declined 36% since their peak in July of 2007.  Recent months’ price data indicate the average sales price has leveled – indicating a bottom.  Everything is in place for NOW to be a buying opportunity.

The Federal Reserve’s stimulus support will end.  The First-Time, and Current Homeowner tax credit will end.  Loan rates will go up, and house prices will begin rising.  It’s time to get busy.

Call me.  I can help you make the move.