Mortgage rates have continued to slowly climb since bottoming out in early September. This week the Fed somewhat surprisingly announced they would taper the amount of Mortgage Backed Securities they would purchase gradually until they get to a $50 billion per month decrease. That’s roughly 7.5% of the overall market. If anyone remembers their Econ 101 class, when supply remains constant but demand is reduced, prices fall. Lower prices for MBS means higher mortgage rates. This should be a gradual process over the next couple years but barring an unexpected economic downturn or disastrous geo-political event, the lowest interest rates are likely behind us. They sky isn’t falling; rates are still very buyer friendly, ranging in the upper 3’s to low 4’s depending on loan type, LTV, and credit.