Long Term Interest Rates from 1790 to the Present
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From Bianco Research who claim "more than 300 institutional clients worldwide including official government agencies, central banks, public and private pension plans, institutional money managers and hedge funds".
Which claim has caused me to never bother pricing them out.
Take note of the year 1916 which incorrectly holds the line marking the creation of the Federal Reserve Bank.
The New York offices of which are the official summer home of Satan himself and the source of all evil in this world.
The Federal Reserve Act was voted into existence December 23, 1913.
Click on the chart if you have an interest in pricing out Bianco Research, someone around here might partner up with you.
Take a hard look at 1940 through 1984 if you own or are planning to own bonds anytime soon.
The value of your bonds rise as interest rates fall, and subsequently fall as interest rates rise.
From Barry Habib at Mortgage Success Source
“So the Fed stopped buying Mortgage Backed Securities, and people are wondering if this will affect mortgage rates.
There's been plenty of whistling past the graveyard, guesswork and denial, where so-called experts have been trying to tell us that there will be minimal - if any - change to rates.
That pipe dream is just nonsense.
During the past fifteen months, the Fed purchased $1.25 Trillion in MBS, which represented 80% of the mortgage market.
Prior to this program, mortgage rates were above 6%.
Now that the Fed program has ended, it's reasonable to assume that mortgage rates will rise back towards those levels…
“Additionally - sovereign debt has come into question.
Downgrades in the sovereign debt of both
Our government currently spends $1.49 for each $1.00 it brings in.
Our debt is now 57% of GDP...and rising.
Does anyone really believe that Treasury yields are headed lower?
As Treasury yields move higher from their current levels, mortgage backed security coupon yields will also need to move higher in order for investors to want to purchase them.
“When all the factors are considered - the chances of higher interest rates are a virtual lock.
And anyone in the market to borrow should consider acting sooner rather than later.
With such low rates still in our hands...and all these various factors pointing at the inevitable fact of rates moving higher.”
Barry Habib, Mortgage Success Source