The end of the Government Money

Well it is coming up on the end of March. This means that the government will not buy any more mortgage bonds after this next week. This will finish up a 1.250 trillion dollars of money that the government has used to keep mortgage rates lower. The question now is what will happen?

There are many economist predict many different things that will happen to mortgage rates after the government stops buying these bonds. I have read that rates will go up anywhere from a half a percent to a full percent by the end of the year. Either way in my opinion these are still great rates.

The fed has also stressed that even though they have stopped buying bonds, they are going to work hard to keep rates down to continue to make homes more affordable.

This means that it is still a great time to buy.