Honolulu Interest Rates Rise

The Federal Reserve (Fed) did what it set out to do.  It purchased $1.25 trillion of mortgage backed securities, succeeded with its plan to lower home loan rates and helped stabilize the housing sector.  Although the Fed stretched out the length of the program slightly, to soften the impact of the end of the program, the training wheels are off, the safety net is gone and home loan rates have already moved higher.  As the Fed begins to sell portions of its massive holdings of mortgage backed securities, rates may continue to move higher still.