The Fed announced they would be pulling back some of their stimulus package which has helped the housing market by keeping long term mortgage rates at historic lows for the last few years.
According to an article in the Wall Street Journal's Marketwatch, "Mortgage costs will also 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." Betsy Purcell - Keller Williams Realty Boston NW - 978-758-7414 betsypurcell@kw.com