Even with the Fed verbalizing their QE2 decisions, China's inflation numbers have wreaked havoc on the bond market today. The bond market has lost ground 5 of the last 6 days. It also appears that this may be the trend as we finish out 2010. Interest rates have been so low for so long that just like the California housing market, they too may have to "pop." I don't think we will see interest rates rise to double digits in the next 30 days, but I do think we will watch as the Mortgage Backed Securities market starts an uphill drive.
This should not scare away potential buyers or potential refinancers, but it should open your eyes that now is the best time to achieve rates of a lifetime.