Since Sept. 18, 2007, the Federal Reserve has lowered short-term interest rates seven times. This caused a direct reduction in the short-term prime interest rates that affect home equity lines of credit.
Also, it contributed to a decline in long-term mortgage rates. 
The above actions were taken by the Federal Reserve to help cure our ailing economy due to the credit crunch. Now, the tide seems to be shifting and the Federal Reserve once again appears to be more concerned with inflation.
Many economists are now predicting that the Federal Reserve may start raising interest rates later this year.
One influential economist who takes this view is Frank Nothaft, Freddie Mac’s vice president and chief economist.
He said, “Mortgage rates drifted up this week over market concerns that the Federal Reserve Board may raise short term rates later this year.”
Freddie Mac (www.Freddiemac.com) maintains a Primary Mortgage Market Survey that tracks the rise and fall of mortgage rates on conforming rate loans. 
If the Fed starts raising short-term rates later this year, long-term mortgage rates will probably also continue to increase further.
The next meeting of the Federal Reserve will be on June 25. It will be interesting to see if they raise rates then, or if they bide their time and keep the door open to raise rates later in the year.
Undoubtedly, this could have an impact on both conforming-rate loans and on jumbo-rate loans which have higher rates.
For those who’ve been waiting for the rates to hit bottom before refinancing, now may be the time to act.
Mike Ferguson is with Windsor Financial Services in Granite Bay.