Did you hear President Obama’s plan to make sure that this country never enters into another housing crisis?

How will his plan affect our current mortgage rates?

Mortgage interest rates

Today’s weather in Northville, Michigan is partly cloudy with a high of 70. It’s perfect weather to stroll around downtown Northville and enjoy the historical side of the city. It is also the perfect time to sell or buy a house before home mortgage interest rates increase.

If you’ve been listening or reading the news, you will know that President Obama went to Phoenix, Arizona last week to speak about the current economic recovery and his proposal for the housing market.

The 3.5% Interest Mortgage Rate

I have never seen or heard of such a low interest rate on mortgages and I remember the days when the rates were closer to 20% than they were to 5%. The New York Times quoted the President saying this about the low interest rates,

"The truth is, it’s been a long, slow process,” he conceded. “But during that time we’ve helped millions of Americans save an average of $3,000 each year by refinancing at lower rates. We’ve helped millions of responsible homeowners stay in their homes, which was good for their neighbors because you don’t want a bunch of foreclosure signs in your neighborhood.”

The truth is we don’t know how much longer the 3.5% interest rates for mortgages or anything close to that percentage will be around. In different parts of the country, interest rates are already moving up. As the economy grows stronger, interest rates will increase.

President Obama’s Plan

What is President Obama’s plan to make sure a housing crisis never happens again in this country? According to CBSNEWS,

"Specifically, the president will lay out a proposal to overhaul the mortgage finance system and urge Congress to phase out Fannie Mae and Freddie Mac, which were bailed out by the government five years ago. In its place, Mr. Obama will propose shifting the bulk of the burden of backing mortgages to the private sector.”

What Does This All Mean For You and Me?

The clearest message from this news is that if you are able to, the time to buy or sell your home is now. It is time to lock in that 3.5% interest rate for the next 30 years on a new house. It can be nerve racking to buy a house or sell a house. If you are interested in exploring your options and opportunities before interest rates escalate, please call my office at 248-348-7200, use our convenient contact form, or email me at: Jamey@JameyKramer.com.