The Federal Reserve Board’s looming shift in policy could escalate 30 year fixed mortgages to 6% or higher. Rates currently are enjoying rock-bottom levels at 5.02%. Last week’s stimulative decision to extend the $8,000 first-time home buyers tax credit and innovative creation of a $6,500 credit for current homeowners could be neutralized with a sharp increase in interest rates.

A $300,000 mortgage at 5.02% today for example works out to be about $1,614 a month. On the other hand, at 6% the mortgage amount would have to be $270,000 to maintain the monthly payment at $1,614. It is clearly in your best interest to buy or refinance now with so many unbelievable deals and selection at 2002 housing prices plus all time low interest rates.

Now is a great time to buy Hilton Head Island Real Estate!