The Fed To Buy More Mortgage-Back Securities

This is very interesting because at first glance I want to get excited that the Fed is going to keep rates low or drive them lower “Federal Reserve officials are open to raising the amount of Treasury and mortgage-related securities they are purchasing beyond the $1.75 trillion already committed, according to a summary of their late-April meeting released Wednesday after the customary lag.” http://online.wsj.com/article/SB124286044650341037.html 

However, the column in The Wall Street Journal” makes a great point.  “But rates mightn’t stay low. Ten-year Treasury yields, which usually influence mortgage rates, have jumped from 2.1% in December to north of 3.25% recently. That has accounted for most of the narrowing of the spread between Treasurys and mortgage rates, which have been essentially flat, notes RBS bond strategist David Ader.”  http://online.wsj.com/article/SB124286080878241043.html