Home loan rates remain at historic lows, but it’s not going to last forever. The added demand for Mortgage Backed Securities as a result of the Fed purchase plan has kept rates low and Bond prices high. As of last week, the Fed had purchased another $32.4 Billion, bringing the current total to $849 Billion of the $1.25 Trillion they had originally committed to. The Fed’s purchase program is scheduled to end later this year, threatening to decrease the pressure that has kept home loan rates near present low levels. There has been discussion that the program will be extended but there’s also been talk that it could end prematurely. There are no guarantees except for that when the program ends, home loan rates will surely rise.

Additionally the $8,000 First Time Homebuyer credit will expire as of November 30, 2009. It’s crucial for homebuyers to be prepared to take action. Many are doing just that recently as they are recognizing the opportunity that has presented itself. Last week home loan applications surged to their highest levels since late May according to The Mortgage Bankers Association.

Let me know if I can answer any questions for you, or perhaps a friend, family member, neighbor or coworker that might be thinking about a home purchase. The combination of reduced home prices, motivated sellers, low home loan rates, and the potential of a juicy tax credit is too great an opportunity to miss.