February 22nd, 2010 9:52 AM by Eric Fang
One propects emailed me this weekend about the rates.According to her, her agents said that the rate will go up fater April since Fed started increased the rates.
1)Fed increased the Discount rates, not Fund Rates.So the discount rates are for the banks. The bank's cost higher now. We can only care about the Fed Fund Rate.
2)after March 31st, Fed will stop buying MBS. Either GSEs(Freedie Mac or Fannie Mae) will step in or private investorwill step in. If the rates goes higher, the Fed will step in again.
So please don't worry. The rate will not go much higher, strategy is more important than timing the market.