People who were buying homes in the 1970’s are probably laughing right now! They were taking out mortgages with rates in the mid-teens and we are getting concerned that yields may begin to move above 1%. Interest rates are getting a lot of attention and for good reason. For the first time in a long time, there is scope for them to go higher. Maybe not back to the 2% - 3% range, but could the ten-year yield double from here? It could, and it would still be extremely low. A double from here would take this benchmark rate to a whopping 1.6%. Essentially back to where it was before COVID accelerated a move to the downside.
What If Everyone is Right on Rates?
What If Everyone is Right on Rates?
What If Everyone is Right on Rates?
People who were buying homes in the 1970’s are probably laughing right now! They were taking out mortgages with rates in the mid-teens and we are getting concerned that yields may begin to move above 1%. Interest rates are getting a lot of attention and for good reason. For the first time in a long time, there is scope for them to go higher. Maybe not back to the 2% - 3% range, but could the ten-year yield double from here? It could, and it would still be extremely low. A double from here would take this benchmark rate to a whopping 1.6%. Essentially back to where it was before COVID accelerated a move to the downside.