We are fully expecting a rate jump of 1/2 to 1% by the end of 2010 and it should start in earnest around the 2nd quarter when the Fed pulls out of their $1.4 trillion buying spree of Mortgage Backed Securities.

Everything keeping the housing market going is artificial and alot of this will be going away by the end of April unless another extension of tax credit/something else is enacted.

We are already seeing rates slowly but steadily going up from late 09 record lows and UW guidelines tightening up even further on automated engines from Fannie and Freddie.