-“Analysts said the quarterly results indicate that mortgage rates would most likely continue to rise because Freddie Mac expects to scale back growth in how many mortgages it purchases.

“Freddie and Fannie have been propping up the mortgage market by continuing to buy larger numbers of loans,” said Paul Miller of the Friedman, Billings, Ramsey Group, an investment firm in Arlington, Va. “If they start pulling back, mortgage rates are going to start climbing to north of 6.5 percent. People will start panicking at 7 percent.”

The average interest rate on a 30-year fixed mortgage as of July was about 6.5 percent, according to Freddie Mac.”

Forgot to add this part in. The GSE’s just can’t keep proping up this market like they have been. We will see some pain all over SD if interest rates hit 7+% this winter.