Home loan rates continue to hover right near three-year lows. There are many "smart" folks on Wall Street who say rates are going to push even lower at some point...and they may be right. But what if they're wrong? What if rates have bottomed for the foreseeable future?
Here are three reasons why rates may have bottomed -- at least for now:
- Solid economic numbers continue to be reported. We are seeing a historically strong labor market, rising wages, high consumer and business confidence, and an overall boost in housing. Bonds hate good news and there is simply too much good news to go around at the moment.
- Signs of improvement around the globe. One of the main tailwinds to our low rates is the relative underperformance of countries around the globe. It appears that many parts of the world are doing a bit better thanks to central bank monetary stimulus. If this trend continues, it's tough to see much better rates anytime soon.
- The trading action in the Treasury market. This may be signaling that further rate improvement from here may be tough to achieve. In recent weeks, in the face of heightened fear and uncertainty surrounding the coronavirus (which usually lowers rates), the 10-year Note yield was unable to move beneath 1.50%, which is also close to a historically low yield seen just a few times in the last decade. If the 10-year Note can't improve in the face of very uncertain news, a near-term bottom might be in place.
So, what would push rates to historically low levels? It would likely take some very bad news like an escalation of the coronavirus outbreak or possibly something worse.
Bottom line: the U.S. economy is performing very well. Rates are near historic lows and the markets are telling us this may be about as good as things get -- for now. So, if you, your family, friends, or clients are considering a home loan, now is a terrific time to lock in at incredible rates.
Long Term Care Facts
- 70% of People over age 65 will require some care at some point in their lives
- $100,380 is the Average annual cost for a private room at a nursing home
- $50,340 is the average annual cost for Home Health Aid
- 20% Will need long term care support for longer than 5 years
- 65% of older adults with long term care needs rely exclusively on friends and family to provide assistance
- $290 Billion - In 2019 Alzheimer’s and other dementias will cost the nation
- 3.7 Years- Average length of long term care for women
- 2.2 Year- Average length of long term care for men
- 11% of the population age 65 and older as Alzheimer’s disease. 5.8 million Americans in 2019.
