Uh Oh: Mortgage Rates Are Rising?

There must be some sort of mistake in the chart below because it shows a......rise? in the monthly interest rate on mortgages. What would happen if rates were to actually.......gulp....... rise, instead of fall?

We'll see how the Fed responds to this unpleasant (and inevitable) development. They could always just up their monthly mortgage purchases from $45 billion per month to $450 billion per month. Or maybe the bond market finally overwhelms the Fed's ability to artificially push interest rates lower (this is coming). For more on what this would mean for real estate prices see:

2013 Outlook: Real Estate Prices Have Not Bottomed

h/t Sober Look