Mortgage Rates Soon to Soar to with one-two Punch of G-Fee and Tapering
By Henry J. Daniels - Sr Loan Officer, Nationwide Construction, Rehab,Conv & VA/FHA/USDA
(Henry J Daniels (936) 228-1944)
Today the Federal Reserve Announced the beginning of the end for their Quanatative Easing or QE program This Coupled with the increase of the G-Fee (Guarantee fee) increase of last week will definitely lead to some erosion in buying power. Now I've got your Attenion and before you want to go jump off a bridge Hold on a Minute! All of this is good for the market and the economy. Lets Tackle these one at a time: The Tapering means that the Government and namely the Federal Reserve will be reducing their influence on the Mortgage market which they didn't participate in until 2008 see chart. By buying into the Mortgage Market it's like printing money which is not good for the economy because it makes your dollars worth less. G-Fee is being increased in 2014. The G-Fee or Guarantee Fee...