Great news again for homeowners and potential home buyers. The yield on the Benchmark 10 year bond has now fallen to 1.73%. 30 year bond is at 2.30%. This is a new all time low.
Conversation by some experts were that the yield could fall further and even as a low as 1%. While I am not so sure about falling to 1.0% I do believe that the ability for the FED to increase short term interest rates is difficult and won’t happen this year. Even though they say they will do so mid year to 3rd quarter. For the time being, mortgage rates are getting back to all time lows and this will only keep values in the home market to increase. Not as much in the last couple of years because that was a snap back effect. But at a more normalized rate.
Having a payment based on a 3.75% interest rate for the very long term will become something that lifestyles are made around.