Time may be slipping away for consumers to take advantage of one of the best opportunites for home buyers in U.S. history. The continuing buyer’s market has been fueled by a much larger than normal supply of housing; the federal tax credit gives home buyer’s unprecedented tax savings; and interest rates have remained extremely attractive – thanks in part to a Federal Reserve program to buy mortgage back securities. However signs are that the party may be coming to an end. Just this past week mortgage interest rates have climbed above 5% for the first time in 2 months. The home buyer tax credit expires in April and is not expected to be extended. And, according to Amy Crews Cutts, deputy chief economist at Freddie Mac, interest rates are likely to rise to 6 percent by the end of 2010. “Extraordinary resources have been put into keeping the rates down and supporting the mortgage markets and it’s hard to imagine that the rates can go much lower than they are,” Crews Cutts said. “Anything we get at or below 5 percent is a gift at this point.”
