Ripple Effects From Fannie And Freddie

The Washington Post reports:

If you're thinking of buying or refinancing a home, expect to see a rise in mortgage rates, the experts said. But if you already have a mortgage, even one backed by Fannie Mae or Freddie Mac, you should have nothing to fear as long as you have no pressing need to refinance, they said.

A spike in rates could also drive homeowners into foreclosure as hundreds of thousands try to refinance out of adjustable-rate mortgages that are scheduled to reset this summer.