A few days ago I posted, “Could interest rates increase 0.75% in January?” on what might happen if the Fed’s mortgage buying program ends on December 31 as scheduled.
Recently, Calculated Risk looked at the impact of Fed buying mortgage backed securities on mortgage rates. They estimated that the program lowered interest rates about 0.35%.
So we have two estimates now – if the program ends December 31, it could increase interest rates 0.35% or 0.75%.
If you know anything about this issue, I would love to hear about it in the comments.