So the Federal Reserve pumped more money into the markets and Mr. Bernanke was certain that it would keep interest rates lower. Well,  not so for mortgages! Since the QE2 infusion, mortgage rates are almost a full percertage point higher than they were just prior.And, it doesn't appear that the markets are embracing the latest political manuevering in Washington. It seems that the payroll tax cut or better said, the reduction of individual contribution to social security benefits (4.2% instead of 6.2%) is not receiving rave reviews in the market either!

So, if the Fed was wrong and the markets are not liking what they are seeing in the extention of the tax cuts and the unemployment benefits, then rates are destined to climb higher. Bottom line... if you are thinking about buying a home, STOP THINKING and JUST DO IT! It is safe to say you may have missed the bottom, the lowest rates for the year were offered last month. But, rates are still good. Lock in your rate for your purchase before they go any higher.

Get out and talk to your realtor. They are going to tell you the same thing!

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