Whether you believed it or not, or thought it was shameless tactic used by the mortgage industry, (heck I even used it to push my buyers along at times!), warning people that rates are at a historical low and you better lock a loan and buy now before rates start to go up!  Well, we've been threatening for the past 2 years, and rates stayed put.  I suppose part of the reason rates stayed low for awhile was because of the financial hardship we experienced as a nation, and Feds decided to let it ride a little longer.  Well my friends, I'm not crying wolf ... the "ride" of low rates, I fear is finally over.  This time it's for real!

Taking effect today, the Federal Reserve, in its first step to return lending to normal after more than two years of extraordinary actions to prop up the economy, on Thursday raised its discount rate -- the interest rate it charges on emergency loans to banks -- by one-quarter percentage point.  The increase, to 0.75 percent from 0.50 percent, takes effect on Friday.  Officials said the move was not meant to be a broad tightening of credit. Rather, they said, it was intended to discourage emergency borrowing when other financing is available to banks. The discount rate had been at 0.50 percent since December 2008.

So, what does that mean?  It means rates are still at a historical low!  But, they will be gradually climbing and if you're sitting on the fence deciding to pull the trigger and buy a home ... NOW, is the time to make up your mind.  As of today, if you are a first time homebuyer, you still have time to close by the June 30th deadline to get your tax credit!

[Source: NY Times]