Greg McBride from Bankrate says that he expects mortgage rates to rise half a percent or 50 basis points as the Fed stops buying mortgage backed securities. This is consistent with our own internal BestCashCow projections.
The end of the Fed's MBS buying program will clash with investors continuing to buy Treasuries as a safe haven from European problems. This Treasury buying will help put a lid on mortgage rate increases.
Since the Fed has announced the end of its programs and has slowed its purchase of mortgage backed securities, mortgage rates have not gone up, but have held steady.
Still, if you are thinking of refinancing, it's better to do it sooner rather than later.
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