From what I am hearing the Federal Reserve is buying long term bonds with the anticipated result to lower mortgage rates. Currently hovering just under 5%, some think mortgage rates could go to 4%. However, waiting for this to happen could be dangerous because when the Fed decides it’s time to balance their balance sheet the opportunity will be gone for some time to come. Like I have said in other posts: “What the government “giveth”, the government “taketh” away.
There are many changes taking place in the mortgage market to restrict perceived dangers. One of which is eliminating PMI (private mortgage insurance) on condominiums. This rule does not apply to FHA loans, but the condominium association must be on the FHA approved condo list. At this point I don’t know how these changes are going to affect our Southeast Michigan housing market (I don’t think it will help), but the cure to all of our financial ills is jobs and jobs that will allow funding of a mortgage.