Municipal Bond Forum
Mortgage rates
Q
Where do you think mortgage rates are headed?
A
James A. Klotz responds:
In our 35-year history in the bond market, we have never found anyone who could accurately predict the future direction of interest rates with any consistency. The difficulties in today’s mortgage market are caused more by the tightening of credit standards than by affordability based on interest rates. In general, we don’t anticipate any significant rise in the 10-year Treasury bond, on which mortgage rates are based.
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