In the mortgage rate predictions column I predicted 5.49% this week, but it is likely that rates are going to be MUCH higher.  The 10 year treasury note almost hit 4% just as I predicted before some late selling.  Expect to see rates following the treasury note higher.  This is VERY bad news for a mortgage rates forecast and the immediate future of the housing market.  I hate to say this, but it looks like it is actually going to get worse, possibly much worse.  Many of the rates that were supposed to be locked are not going to get funded now because rates shot up; not good!  All those refinances that were on the books, those may go unfunded and all this government interaction may have gone for naught.