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When the economy hit the skids in September 2008, the government made a massive intervention. In addition to formal stimulus from Congress, the Federal Reserve did what it could to loosen up the credit markets. One of the Fed's most well-known programs was its commitment to buy $1.25 trillion in mortgage-backed bonds in the open market. Internal studies from the Fed say the program lowered rates by 1 percent last year. The program ends March 31, 2010.

A brief recap of the FOMC's statement today and what it means to mortgage rates. In short, rates are higher and should go higher still.

A fair number of my readers are mortgage- and/or real estate-related businesses. Consider this a public service announcement. REtechSouth is March 25-26, 2010 in Atlanta -- 8 weeks away. This is a show you should make time for.

The Federal Reserve begins a scheduled 2-day meeting today during which it which it will vote to leave the Fed Funds Rate unchanged near zero percent. The press will report this tomorrow as "Fed Holds Rates Steady". But, don't confuse this to mean that the Fed held mortgage rates near zero. The Fed doesn't set mortgage rates. The Fed sets the Fed Funds Rate. The former is a long-term rate and the latter is a short-term rate.

If you want to know where mortgage rates are headed in the future, you may be better off ignoring the experts. I conducted a 50-week study of the popular Bankrate.com Mortgage Rate Trend Index and it showed that the "expert consensus" on mortgage rates is wrong 3 times more often than it's right. That's not good.

Studies from inside the Fed say the group's intervention lowered rates by 1 percent last year. We've been getting low rates because the mortgage-backed market is "artificial". The Fed is a non-natural buyer. Starting April 1, 2010, though, life goes back to normal. The Fed is ending its support and the market will be left to its own. It will be ugly for mortgage rate shoppers.

Tuesday, I asked my Twitter friends what mortgage questions they'd like to have answered. I picked 3 replies and pushed it to video.

Life as an FHA borrower just got tougher. In an effort to shore up its flailing balance sheet and dwindling capital reserves, the Federal Housing Authority rolled out sweeping financial changes this morning. FHA borrowers must now look better on paper and have more cash at closing. Mortgage insurance premiums are rising, too.

Clearly, some states are more foreclosure-heavy than others. And always have been.

As reported by RealtyTrac.com, the Buckeye State is the only state among the Top 10 in 2009 Foreclosure Activity to post fewer filings versus 2008. It's a nice boost for a state that's been beaten down by high unemployment and the New York Jets. Foreclosures are slowing statewide, helping both home values and homeowner morale.