Northern Virginia Realtors: Will interest rates rise? What will the Fed, Fannie and Freddie do in 2010?

Will interest rates rise? What will the Fed, Fannie and Freddie do in 2010?

Tom: What do you think will happen to mortgage interest rates in 2010? Will the Fed actually stop buying mortgage backed securities? Do you think that Fannie Mae and Freddie Mac are toast? How will it affect my decision to buy a home in Reston?



Steve:
Well Tom, only God know the future, but the common wisdom is that rates will rise a point to a point and a half by April if the Fed stops helping prop up the supply of mortgage money.

 

But here's a thought for you, if you need and want to buy a house and you plan to stay there at least 4-5 years...go ahead. Yes, a home is an investment, but it is also a lifestyle...something to enjoy.

 

Our first home, a condo in  Falls Church was purchased at 13% ,our secondOur neighbor. Washington DC a town house in Reston at 16%. Those were the market rates in those years...that is all we knew...9% interest rates were 10 years gone when we came of age to buy. We enjoyed both properties and made money.

We kept the first one 20 years and rented it out. We lived in the 2nd. home 7 years and made enough money for a solid down payment on the single family home we have now. If your personal economics work and you are secure in your employment, don't feel you have to put too fine a point on it.

Do your homework. Find a competent agent to help you with your market analysis and make a decision. Do not sweat bullets for years and do nothing. However, if  you cannot stay in the place for 4-5 years and your personal  or employment life is shaky...RENT....it is not a dirty 4 letter word.

Here are two articles you an check out to address your concerns mentioned above: Fannie and Freddie

What will the Fed do?: Fedwatching

 

Why pay more and get less when selling your home? Jan and Steve Bachman of RE/MAX Gateway use professional photographers, create interactive photo floor plans, print full color brochures, and make an individual property website for your listing that goes out to 40+ public real estate search sites including Realtor.com, Trulia, Zillow etc.

 

We also create a custom photo tour that is sent to other agents and prospective buyers.

 

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Happy to Help. No Hassle, No Pressure.

Jan and Steve Bachman are full time Realtors® with RE/MAX, specializing in Homes for Sale in Fairfax, Loudoun, Prince William and Arlington Counties.

    

 

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Comment balloon 3 commentsSteve and Jan Bachman • January 01 2010 09:12AM

Comments

The Fed WILL continue to prop up the supply of money...take that to the bank.

Posted by Eric J, Dream Home Financing (Eric J - Dream Home Financing) almost 10 years ago

I agree, they cannot permit a backslide at this point and the Chinese are not keen on buying anything mortgage related....thanks for stopping by Eric. Happy New Year!

Posted by Steve and Jan Bachman, Realtors - Northern Virginia (RE/MAX Gateway, Reston, Herndon, Ashburn, Sterling, Fairfax ) almost 10 years ago

Rick,

I agree. The "common wisdom" has been inundating us by email, flyer and you name it. Economic and interest rate predictions always cause us to wince since we know that we will be asked to comment and predict by clients and prospects. We always point them to the most "knowledgeable" sources and tell them that all we can truly know are all the facts in front of us today.

Happy New Year

 

Posted by Steve and Jan Bachman, Realtors - Northern Virginia (RE/MAX Gateway, Reston, Herndon, Ashburn, Sterling, Fairfax ) almost 10 years ago

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