Low Mortgage Rates Could Be Ending
Home loan rates below 5 percent are about to disappear, predicted Denis Salamone, COO of Hudson City Bancorp, the nation’s largest thrift.
“I don’t think the market will stay this low for many more months,” Salamone said Tuesday.
Salamone said that despite the Federal Reserve’s decision to keep short-term rates low, if the Fed buys fewer mortgage-backed securities, loan rates will rise.
It will take another 12 to 24 months to sell off excess inventory and until that happens, housing prices may continue to fall, Salamone said.
Source: Reuters News (11/17/2009)
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