Predicting When Interest Rates will Rise

[Samantha M.]

My gut feeling tells me interest rates are going to rise here in DFW here shortly. What key indicators do you look for, or what business websites do you monitor to figure out when interest rates may rise?

[Robert Steele]

People have been predicting that rates would rise long before the Fed started ballooning it's balance sheet with Treasuries.

In the 1980s, nobody could imagine a mortgage rate below 10%. In the 1990s, nobody could imagine a mortgage rate below 7%. In the 2000s, nobody could imagine a mortgage rate below 5%.

If I had a buck for every time some radio commercial told me now was the best time to lock in low low mortgage rates because they are certain to rise tomorrow I'd be rich.

Don't underestimate how long this 30 year bond bull market can continue. We seem to be following Japans post credit bubble collapse that started there 20 years ago. Long term rates in Japan have been under 2% for 16 years now and they're mortgage rates right now start with a 1% handle.