Will Low Interest Rates End?
Many believe they will once the Fed stops buying mortgage-backed securities at the end of March. I think they need to continue to do it but I very well may end up being wrong. I would still lock an interest rate before that because that is a large gamble but I just think we need low interest rates to continue.
Although the Fed has argued that low interest rates caused the housing mess that couldn’t be further from the truth. Maybe we won’t need the Fed to continue buying mortgage bonds if others show interest in them. Especially since we are starting to see that there isn’t this rapid growth that everyone speaks of and many will still look for a safe haven like Treasuries and Mortgage bonds. Why would you want to own mortgage-backed securities? They may become more attractive if the supply is to drop which is expected.