Interest Rates are extended

Here are 3 general moments when U.S. 2 year bond yields were extended.

We’re amongst one of those moments now.

If you are not a buyer of bonds, this study also implies that you shouldn’t lock in or fix your borrowing rate.

I predict a large hyperventilating fear campaign from banks and mortgage brokers trying to convince borrowers to lock in their interest rates.

In turn, real estate agents will try to persuade their vendors to lower their selling prices because “rates are going much much higher”.

I think this is another case of ‘people doing the wrong thing, at the wrong time’.

March 10, 2023

by Rob Zdravevski

rob@karriasset.com.au