A top Federal Reserve policy-maker has hinted that home loan rates across US could hike by as much as three-quarters of a percentage point by the time 2010's Spring rolls in, with the Fed looking to end its mortgage bonds purchase program. The thoughts were shared by Boston Federal Reserve Bank President Eric Rosengren, and were officially published on Saturday.

"You maybe would have thought you would have seen rates move up more quickly than they have, but nonetheless it's a concern", he said.

During the first week of January, 30 year mortgage rates had averaged 5.09%, as per the mortgage finance firm Freddie Mac.

The Fed is now all set by March end to cease the $1.25 Trillion mortgage-backed securities purchase program, which was started to pull down mortgage rates and support the housing sector as it was struggling to emerge from one of the worst financial crisis ever.

"Until inflation gets back to 2 percent there is plenty of room to wait and see how the economy progresses. We want a trajectory that gets us back to full employment and gets us back to 2 percent", said Mr. Rosengren, while stressing that the Fed might not raise the rates after all, if the economy does not allow so, but it seems highly unlikely as of now.