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When the government announced they were going to stop buying mortgage-backed securities, there was a little panic in people interested in mortgage rates.  Many experts in the mortgage industry wondered if this could lead to higher mortgage rates to drive up demand from investors, to fill in the gap the government left.

But according to an article by Yahoo Real Estate, there’s no reason to panic just yet.  The slight increase in long term interest rates last Friday was more of a result from the 162,000 jobs added in March.  This is great news.   For the first time in three years, the U.S. has gained this many jobs in the monthly report.  The article argues that this (and not the Fed MBS exit) is the reason for the +0.125% increase.

For the time being, mortgage  rates are still low, so homeowners looking to refinance should take advantage and lower their payments.  For the full article, be sure to check out No Need to Hit the Panic Button Yet – Added Jobs Push Mortgage Rates Up.

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