The Federal Reserve allocated $1.25 trillion dollars to aid the badly hit real estate market. The Fed has bought $1.19 trillion dollars of Mortgage Backed Securities (MBS) since January of 2009. That leaves $55 billion for the Fed to spend before the allotment runs out at the end of March 2010. Check out FAQs about the Mortgage Backed Securities program.

Mortgage Backed Securities (MBS) are securities that combined home loans for investors to buy and sell.  Think Ginnie Mae , Freddie Mac , and Fannie Mae.  The Fed’s program has been successful in the fact interest rates have been kept low and the real estate market has been stabilized.

However, where are the investors, which the Fed is expecting, to buy the MBS’s after March 2010?  After all we are a supply and demand economy.  If investors are going to buy mortgage backed securities then it must be financially appealing to them.  This means rates of interest will have to increase to appeal to investors. So where does that leave the average American home buyer?

Caldwell Bankers has a solution:  Pre Purchase Rate Protection (PPRP).  PPRP will allow a buyer who is looking for but, not finding a property before the March deadline to cap the interest rate at the current lower interest rate that is being offered.

This offer is only good for 90 days; so hurry and contact your local Caldwelll Bankers Residential Brokerage.

Click here to view Orly’s

Ringwood NJ Real Estate and Wanaque NJ Homes for Sale

Click here to Search homes for sale in Ringwood, Wanaque, West Milford and the surrounding area.