Many economists and the housing industry are waiting to see the direction home mortgage rates will go after the nation’s Federal Reserve completes its purchasing of Mortgage-backed Securities at the end of this month. There are two opposing views. Both are valid, but we think it will depend on how much noise the Fed will make out of it.

Several months ago the Federal Reserve announced that it will buy $1.25 trillion worth of mortgage-backed securities to help to keep the home mortgage rates lower. The plan was to help the slowly recovering housing market. It has largely worked, but at the end of this month Fed will wind it down.

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