As you can see by the chart below the bond is way in the red today, down -66 points so far from Tuesday’s close. 

(When the bond goes down, rates go up.)

Why is this happening today?  The only indicator on the street is heavy selling of bonds as the government’s mortgage bond purchase program comes to an end on March 31. 

We have been cautioning about the ending of the government’s bond purchase program for several weeks, and that will happen in 7 days.

To add on to the concern in the bond markets, the Fed’s Kansas President Thomas Hoenig said on Fox Business News that he is worried low borrowing costs may cause inflation to accelerate.  Inflation is the enemy of low mortgage rates. 

If you have not yet locked in these great rates, you may very well miss them.