Mortgage Backed Securities Ends.... Goodbye to 5% Interest Rates

Last week saw the end to the Federal government's program of buying mortgage-backed securities.

In all probability, assuming the economy continues to turn around, this means that mortgage rates will most likely start to climb over the next couple months. The rates will be more influenced by economic factors like improving economy, concerns over inflation etc.

I suspect that we will begin to see the rise to 5.5% and above for mortgage loan rates somewhere around June...