I think we all should be. The Fed’s continued purchase of Mortgage Back Securities has been keeping MBS prices higher which in turn has been keeping New Jersey Mortgage Rates Low. Government purchasing of MBS will be ending sometime in the beginning of 2010. According to some analysts this may drive our rates up as much a one percent next year. Although a 6 % interest rate is not bad, couple it with high unemployment, short sales and increase foreclosures it makes for some concern.
The major relief in the housing market will be a continuation of the first time home buyer tax credit. Lower property values, low down payment mortgages with seller concessions and tax credits have been the driving force for the New Jersey First Time Home buyer. Hopefully this segment of the market will continue to have momentum and encourage the move up buyer in 2010.
