I've been writing about the importance of getting escrows closed before November 30th in order to take advantage of the $8000 first time homebuyers' credit. Today we were reminded that other programs impacting real estate will be expiring or phased out soon.
Most important for our area, the "agency jumbo" maximum will revert back to $650,500 from its present $729,750 at the end of the year if something isn't done.
We were also informed that the Fed's purchase of mortgage backed securities will be spread out until March of next year...but the amount that they are buying is limited. Once the planned amount is used up, interest rates on new home loans, now at a 40 year low, could easily go up to 6 percent again.
Realtors and other interested parties are working hard to influence the "powers that be" in Washington to extend these time limits. The health of the real estate market is vital to a market recovery.
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