Rate Watch

Q: When is “economic recovery” not?
A: When consumers don’t buy in.

So, expect mortgage interest rates to stay very near the 4.75 to 5.25% range for the short-term  — until the Fed stops buying the Mortgage Backed Security.

After that — like, the day after that — expect mortgage rates to return to 6.25% as that’s where they were in November 2007 when the Fed began to purchase the MBS.

The payment difference between 4.75% and 6.25% on $150,000 is $141.11 more per month.

$250,000 is $235.17 more per month.

$350,000 is $329.24 more per month.