The clock is ticking on those who have mortgages that were backed by the Federal Reserve since December 2008. The program was put in place to keep mortgage loan interest rates low and protect individual mortgages, so that the government could offer programs that helped keep some out of foreclosure. But, now the federal reserve is yanking the rug out from under those same people that took advantage of the interest lowering programs and tomorrow they could possibly see a rate hike.
So what do we do? Sit back and make our prayers, cross our legs, fingers, and toes in hopes that our government will see the need that still persists and extend the program. If they don’t, it appears that some investors are taking up the slack already. According to AOL’s Housing Watch, private investors have been buying up “more than two-thirds of the securities” making the mortgage investment a ssafe bet again.
The housing market is a tricky game, but somebody’s gotta play it or we lose in this recession. The housing experts weighed in on the report and said that things can go either way. According to Housing Watch, Mark Fogarty, editor of National Mortgage News said, “We have heard predictions both ways — that the end of the program will cause a big bump in interest rates and that it will have little effect at all.”
Read more about what tomorrow’s deadline might mean here.