It's hard to believe that spring is right around the corner. Along with it comes the housing tax credit deadline, but that's not all that prospective buyers should be concerned about. As the buying season draws closer, the government is seeking to put an end to a program that's long been responsible for maintaining low interest rates and boosting the affordability of Miami Beach real estate.
By the time this month comes to a close the Federal Reserve will have ceased its efforts to purchase mortgage backed securities from major lenders Freddie Mac and Fannie Mae. What this means is that interest rates will once again come under the control of private investors and it may be a problem because these rates could increase at an unexpectedly rapid pace. This makes things more difficult for any first time buyer who may have been looking to purchase property like Miami Beach condos.
Although it's important to be a bit concerned, prospective buyers shouldn't be too worried about a sudden interest rate spike. The Federal Reserve has already pledged to keep interest rates at low digits in order to maintain some positive economic activity and spur housing recovery. Again, time is of the essence for any buyer seeking Miami Beach real estate. More indecision may equal more risks.