First time homebuyers have driven the sales up more than any other group. When the tax credit ends and the feds stop buying mortgages, the first time home buyers and all buyers will slow dramatically. The tax credit stipulates that a buyer must be under contract by April 30th and closed by June. So far the feds have completed 85% of their purchases and plan to be finished in March. That will leave it up to the private sector to start buying loans again. They won’t be happy with 5% interest rates. Not only that, but who is going to step up?
William E. Wood and Associates