Bernanke Ceases Buying of Mortgage Backed Securities, Expect Higher Rates Soon

Today on a Video Blog by ThinkBigWorkSmall, it was reported that on March 31st the Fed will temporarily quit the buying of mortgage backed securities, which has been credited for keeping our housing market a float.  There are a solid number of economists that believe this action will cause the mortgage rates to start going up this Spring.  FHA and the rest of HUD (Housing and Urban Developement) believe that we are on the edge of making it through this housing slump, and it seems they may believe this isn’t the best time for this.  “FHA commissioner David Stevens thinks a rate increase of .25% – .75% is a sign of a healthy housing market”, said Frank of ThinkBigWorkSmall.  If rates go up too fast, or they reach over say 6%, we can all expect the Fed get back into the buying of mortgage back securities.