John Jeffries, from Plaza Mortgage explains it in layman's terms:
The Federal Reserves "Quantitative Easing 2" is scheduled to end this month, which would put a massive amount of pressure on the bond market and subsequently interest rates. Right now, the FED is buying billions of dollars in bonds to stimulate the economy and speed up the recovery. With recent economic reports suggesting that the economy is again on shaky ground, what will the FED do? Will they proceed and extend their bond buying program which would help rates stabilize or potentially move lower? Or will they be pressured into stopping their controversial spending, thus causing rates to jump later this summer?
I would love to hear from my financial genius friends! What do you think?