Mortgages

Yesterday the Fed's meeting voted to keep the Fed Funds Rate near zero percent while warning that members will decide future rates on a meeting-by-meeting basis. I asked Buzz Mackintosh of Mackintosh Inc, REALTORS to explain for our readers what Fed's warning means and how it will change today's low mortgage rates. This is what Mackintosh said to HULIQ.com in a written reply.

Mortgage disclosure forms will be changed and new forms will be implemented this month. New government rules, which require mortgage loan lenders to provide borrowers more detailed information about their mortgages will go into effect this month. Home loan lenders are now required to explain mortgage loan terms to home buyers in unprecedented detail.

Mortgage backed securities (MBS) closed up 12 basis points today at 104.47 having recouped yesterday's losses and remained 25 basis points above support offered by the 200 day moving average.

While the current mortgage rates are still under 4%, yesterday the average 30-year mortgage rates rose to 3.82 percent. I asked my friend Park McCants from Eugine, OR, a retired Realtor and developer with 30 years experience, what the slight rise in rates means for the average American home buyers and the real estate industry in general. Here is McCants in his own words.