We still are enjoying good interest rates, although they bumped up recently. Interest rates will continue to be attractive. The bump up in interest rates was simply the result of market manipulations with smoke screens pointing at political and economic forecasts and events. The truth is the markets were manipulated, and that manipulation is short term because there is no fundamental explanation. This short term movement of the market in disconnect from fundamentals should be investigated by Regulatory Agencies. The greatest determiner of interest rates now is the need for the U.S. government to keep rates low until tax revenues make it possible to pay for them. This is another form of self-serving market manipulation through the Federal Reserve Bank. Higher interest rates too soon could bankrupt the U.S. Government. Therefore, the underlying long term trend in interest rates will track Fed tax revenues with a lag. This means the market manipulators will try to run rates up, then make them fall, all the while making profits on the transactions. Where does this occur? The usual places... Wall Street and Wall Street Investment banks. Unfortunately, deregulation has made all big banks investment banks, and they have so much capital to throw around and so much technology that they can easily manipulate the markets for their own profit... and they do. Still, the long term trend for interest rates will be up, and if you need a loan, the sooner the better. Just wait for the dips.
Posted on: Thu, 27 Jun 2013 08:50:51 +0000
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