The long-anticipated increase in mortgage rates has begun, but at just over 5 percent, they are still favorable for buyers.  According to MSNBC.com, the best rates are assigned to 15-year mortgages rather than the typical 30-year funding plans.  One reason mortgages have remained low is because the Federal Reserve has been buying new loans, however there is fear that when the program stops in March rates will skyrocket,

Some analysts fear that once the central bank stops, mortgage rates could spike due to a lack of willing buyers, hurting the recovery in housing and the overall economy. But government officials have been optimistic about that the Fed will be able to end its program without a major disruption.

In my own opinion, I believe the real estate market will be shaken when the April 30th “under contract” date arrives for the $8000 first-time home buyer tax credit.