1. Mortgage rates are not likely to rise much. The impact of Fed tightening importantly depends on whether increasing the federal funds rate pushes up the 10-year Treasury rate because rates on mortgage, corporate and municipal bonds follow that rate up and down. When Ben Bernanke pushed up short rates in 2004-2005, those long rates hardly budged because the Chinese government was purchasing Treasuries at a maddening pace to keep the yuan cheap against the dollar. Nowadays, Beijing is selling Treasuries, but private investors in Asia, doubting prospects for the world's second largest economy, are rushing into U.S. securities and other assets. Since the Chinese stock market began its collapse in June, the 10-year Treasury rate has fallen from 2.50 to 2.2 percent — despite statements from many Fed officials about raising rates soon.