Is it good news or bad news? The market takes a hit!

Last week the mortgage market took a substantial hit. That is: the rates went up more than a little. The 30 year rate is still in the low 5's which historically is very, very good. But it is more than the 4% many people were waiting for. The good news is that usually when the economy starts getting better rates do increase. There is a wild card here. The U.S. Treasury has been buying mortgage backed securities to drive the rate down. They still have more than half the money that they committed for that available. So the question is will they or can they pull them back down. By the way the short term (10 or 15 year) rates are still in the 4's so those folks that are interested in shorter terms can still find a great number for them.