Mortgage Bulls Bid Fed Adieu - WSJ.com

What impact will be felt by the Fed's announced pullout from investing in Treasury Securities by March 31? Very substantial, in the form of rising rates, unless other factors and players pick up where the Fed's rate mitigation efforts leave off. Key quote:

"The optimistic view hinges on the government remaining an enormous presence in the mortgage market, both through its mortgage-backed securities holdings and the widespread expectation that it could jump back in if the market falters."

Mortgage Bulls Bid Fed Adieu - WSJ.com

I believe we'll see rates begin to rise,
 not in cataclysmic fashion, but a rise nonetheless. Certainly the actions of investors in search of better returns will be a factor, and it may not take much of a rise to satisfy their wishes. The unmistakable pressures on interest rates, however, are going to be in the upward direction. Buyers and sellers, pay attention. Housing affordablity will decline as a direct result. - David