The Fed is scheduled to exit the MBS market soon. What effect, if any, will this have on mortgage interest rates? The general consensus from the experts is that there will not be a spike in home loan rates.

The reason, the market has already factored this into the pricing.

It is believed, however, that interest rates will continue to rise and be in the 5.75% range by year end. The primary factor for this increase is the concern for our growing budget deficit.