Alan Greenspan & Interest Rates
There has been a lot of talk about Alan Greenspan’s op-ed and for good reason. As I have said time and time again, we cannot predict where interest rates will be but they are at historic lows now. Although many, including Greenspan, think that rates will stay low for the next few months you just never know and I think Greenspan’s example below is exactly why now is a good time to buy or refinance if you are in the market even with the home buyer tax credit coming to an end.
I grant that low long-term interest rates could continue for months, or even well into next year. But just as easily, long-term rate increases can emerge with unexpected suddenness. Between early October 1979 and late February 1980, for example, the yield on the 10-year note rose almost four percentage points.