Will the Fed's Exit Impact Home Prices?
Friday, April 02, 2010
The Fed has withdrawn from purchasing mortgage-backed- securities and will be exiting from the Homebuyer’s Tax Credit after April 30, 2010 (the date the property must be in contract). Many people are talking about the affect these moves will have on purchasers. We should also be looking at how the ending of these programs will impact home values.
The government programs were not enacted just to make it easier for the buyer to purchase a home. The main reason the administration became so heavily involved was to stabilize home prices. How do we know this?
