How This Will Affect VA Loan Rates:
- VA home loan rates have been lower than usual over the last two years, largely due to the Federal Reserve’s involvement in purchasing mortgage backed securities.
- The Federal Reserve originally allocated $1.25 trillion to purchase certain types of mortgage backed securities (MBSs), which has kept VA loan rates superficially low.
- The goal of these actions was to foster improved housing conditions, as well as provide support for the mortgage market, including VA loans.
- The Federal Reserve has significantly slowed down their purchasing and plan to completely withdraw from the purchasing of MBSs by April, 2010.
- Pulling out of the MBS market will eliminate the artificial improvement in the mortgage market, thus allowing VA loan rates to fluxuate higher.
- The money allocated for these efforts will run out in the very near future, so now is the time to secure your low VA loan rate!
Call a VA loan specialist today at (877)867-0905 to lock you low VA loan rate before they increase!
