You guys have to realize that the Fed. and Gov’t don’t set interest rates especially mortgage rates. Those are based on the bond market (10 yr) and if the bond market doesn’t like what the Fed is doing and treasuries rise then the Fed loses it’s power. Liquidity is being thrown into the market as commercial credit is drying up. If that locks then the bond rates explode as will mortgage rates. We could very well be close to that point right now.
