The headline says it all. Short term interest rates that banks pay each other will stay the same. Prime rate will stay the same. Mortgage interest rates will undoubtedly go up at least by the end of March. An interest rate spike could make the fragile Oregon housing market continue to struggle to recover. The Eugene and Springfield areas could just be getting shoring up and drop down again.

That is not the ideal, but the Fed did make it absolutely clear that they will not be purchasing mortgage backed securities (MBS) after March 31. By their own internal survey, they had determined that the purchase of MBS over the past year had brought mortgage interest rates down about one full percentage point from where they would have been. Additionally, the First Time Home Buyer and Move Up Tax Credits are due to expire on any offers made after April 30, 2010.

To me, this gives one more reason to be looking to purchase now, rather than waiting until late Spring or early Summer. Rates are low currently and will probably be going up soon. Call me (Fred Chamberlin) today and let’s get together to discuss your options. You can reach me at 541-342-7576/541-221-3455 cell or e-mail me. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401.

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