The time is right to lock your mortgage rate

The Fed recently confirmed that it would conclude its Mortgage Backed Securities purchases in October, 2014. While the Fed has been tapering its purchases recently, its exit from the MBS market will reduce demand, and drive the price of Mortgage Backed Securities down. As we know, interest rates and bond prices have an inverse relationship, so when bond prices go down, interest rates go up.

With that in mind, if you are in the real estate purchase market, or have an adjustable rate mortgage that need to be refinanced, then it is the time to lock your interest rate.

First Indiana Mortgage offers a wide variety of loan products, low rates, and superior service. Visit us at www.firstindianamortgage.com or call 888-627-2002

The Fed recently confirmed that it would conclude its Mortgage Backed Securities purchases in October, 2014. While the Fed has been tapering its purchases recently, its exit from the MBS market will reduce demand, and drive the price of Mortgage Backed Securities down. As we know, interest rates and bond prices have an inverse relationship, […]