Fed's pullback might not cause mortgage rates to soar, analysts say

02/25/2010 | CNBC

Many market participants and observers have expressed concern that mortgage rates will surge when the Federal Reserve ends programs supporting the market at the end of next month. Analysts, however, said rates might not actually move much, at least not in the short term. "I don't think we'll see a major reaction and probably not a big spike higher in rates, even though the market is losing one of its major actors," said Kim Rupert, managing director of global fixed-income analysis at Action Economics. "So we're going to have to find some other sources of demand. The market's pretty ingenious, and it can fill that hole without serious consequences."

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