This is very true. Government purchases of Mortgage Backed Securities is set to start winding down. The days of these historically low rates below 5% are nearly done. People looking to purchase need to do so now or risk the chance of losing a very rare opportunity.

Yes, that is correct. The United States Government is the single largest purchaser of MBS's. (Mortgage Backed Securities) History has shown us that without the Fed's purchase of the MBS's, the 10 Year Treasury note yield has increased significantly. This is true right now. Mortgage rates have increased steadily over the last 60 days and the U.S. Government has indicated that they are nearing the end of their buying cycle.

Once the government stops buying mortgage backed securities, we will be dependent on foreign investment. When that happens they will be looking for greater returns on their investment, which will surely be a factor towards increased rates. TheFriendlyNeighborhoodMortgageGuy.com-Sean