Yesterday, the Fed announced it would begin to wind down the quantitative easing program known as QE3. Analysts say consumers should start to prepare now — especially those who are planning to buy a car or home within the next three to six months.
Mortgage costs will increase when the Fed pulls back on QE3, says Lawrence Yun, chief economist with the National Association of Realtors, the trade group for the industry. “Sellers had a very easy time selling houses in the last year,” he says. Those who need to make a move to a better school district or larger home, he says, “need to realize that it could be more challenging a year from now.” The average 30-year mortgage rate currently hovers at 4.3%, “historically a very, very favorable rate,” but that could rise to 5% or 5.5% next year, Yun says.
Twenty percent used to be the magic number when it came to down payments, but it’s certainly not the only option. For physicians with good credit, it’s still possible to get a physician loan now with as little as 5% down. Let us know how we can help you.