Yesterday the U.S. Treasury played their April Fool’s Day trick early – they quit buying Fannie Mae & Freddie Mac mortgages! This program was instrumental in stabilizing interest rates throughout the country – many people said it subsidized home purchases by keeping interest rates too low. It’s too soon to say how it will affect interest rates but it is expected to raise rates by around an 1/8th of a point. On a $300,000 loan that would be about $23.00 a month more. If these predictions prove correct the change in policy won’t have much effect on home sales – good news! Meanwhile the inventory of La Crescenta homes for sale is still at record lows!