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INTEREST RATES ARE HEADED UP, MAYBE WAY UP!

October 15, 2013 1 comment

Short term bond rates and long term mortgage rates are heading up.  “While the Democrats and Republicans are locked in a fool’s embrace, those who would benefit from interest rate hikes lick their fingers in anticipation,” so says Paul S. Horvitz, the President of Dominion Mortgage Corporation.

The U.S.’s largest bond holders would like nothing more than a big bump in Treasuries.  If you think the debt ceiling is a problem now, just wait till the Chinese are getting 5% on our bonds.

Yes, we need to solve our long term fiscal problem and we need a budget.  What we need the most is for our elected officials to get their heads out of the sewer of ideology and govern.  Mortgage rates will follow the increase in bond rates.  The consumer, the homeowner, and the economy at large will suffer, and, yes, Mr. President, the rich, those with cash, will be the biggest beneficiary of the “fool’s embrace.”

Categories: Dominion's Blog