Interest Rates Low Even as Fed Pulls Back

Interest rates for mrotgages remian low, depsite Fed pull-back.
Interest rates for mrotgages remian low, depsite Fed pull-back.

Average interest rates for home loans are expected to rise close to 6 percent by the end of 2010, as the federal stops spending trillions to prop up the mortgage market. It's like taking a crutch away from someone healing from a broken leg: Even if this person is on the mend, you'd expect him to wobble a little.

However, so far the mortgage market remains unmoved. Borrowers can still get long-term, rock-bottom low interest rates below 5 percent. What's going on?