Will mortgage interest rates 'spike' in spring???

"Lending rates will also spike as the government withdraws its trillion-dollar support of the mortgage market in the spring," says an article in the New York Times on 1/1/10.

This might argue for home buyers to act before this happens so they can lock in historically low interest rates. Sellers may also want to consider selling sooner rather than later as rising rates could adversely affect home values.

"As banks enjoy a recovery, lending may slow further as the Federal Reserve shifts its focus from spurring growth to heading off inflation, reversing the current period of ultralow interest rates that has been a boon to banks. Right now, low rates are fattening banks’ profit margins, since many lenders are not passing on their own low costs to borrowers. Lending rates will also spike as the government withdraws its trillion-dollar support of the mortgage market in the spring."

Here's the link to the full article:

http://www.nytimes.com/2010/01/01/business/economy/01wall.html?bl