Interest rates

03/04/2009

Everyday the 10 year bond swings 19/32 one way then the next day swings back 19/32 to the original position. Interest rates have been "stuck" in the range that they have been trading since December 2008. Most of my clients have been waiting on the sidelines to see how low rates will go only to be frustrated by the lack of movement. I have not seen anyone reporting on why this is happening--I guess we have to wait for the history books to be written.
I say all that to say right now, no one knows why this is happening. Stocks are due for a correction any day now and bonds will suffer and rates will climb. It is what it is.
Don't sit back and wait any longer--go buy that house you want and take your 5% range rate that is offered. I don't see rates in the 4% range for 30 year fixed so act now before I have to say "told you so."