Although mortgage interest rates haven’t really increased since the Fed started to reduce it’s purchases of mortgage backed securities, we’ll likely see more upward potential on mortgage rates after the Fed ends the program in the coming months. Fed purchases are running about half of what they were at the peak last spring.

The Fed plans to stop purchasing mortgage backed securities in the coming months. It was very unusual for the Fed to buy such securities. The Fed’s goal was to keep mortgage interest rates low to help the housing market.