Marcus Aurelius

US Economy Still Has a Ways to Go

I wonder what the thought is about the state of long term rates 10 years out from now is? 30 year mortgages in my locale are currently varying from about 6.25% to 6.75%. A local bank is offering a 10 year arm for about 5.7%.

This will give us the chance to gobble up a lot of principal and keep an eye for long term rates in the same neighborhood (about the start of this year late last year 30 year mortgages were going for 6% +/- .125%).

However, if we don't figure out our energy situation I fear interest rates on mortgages may be going back to the way they were in the late 1970s.