When will rates go up? Most likely in March or April as the Fed’s stop purchasing mortgage backed securities. Just in time for the sleeping home buyers who decided to take a nap once the home buyer tax credit was extended. If you know someone purchasing a home this Spring to take advantage of the $8,000 home buyer tax credit – wake them up! They could buya larger home and it would cost less per month if rates stay at their current levels. Eric Rosengren of the Federal Reserve Bank of Boston has predicted rates could increase .75% in 2010.
HOW BIG? – The US economy shrunk by 2.4% in 2009 to 14.5 trillion in size. China’s economy grew by +8.7% in 2009 to 4.9 trillion in size (source: Commerce Department).
THIS YEAR? – the US economy is projected to grow +2.7% in 2010. China’s economy is projected to grow +10% in 2010 (source: International Monetary Fund).
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