10 Year Interest Rates

Where are 10-year rates headed?

Where are 10-year rates headed?

Interest rates are still well within the long-term downward channel, even if you bring the lower dotted line up parallel with the upper one – we are now sitting in the middle of the channel.    Of course, at these low levels a change from a bit above 2% to the top of the channel at a bit above 3% is a very large percentage increase (50%+), even though a small nominal change.  But it would still be within the long-term channel.  We really don’t know where this game is headed over the next few years.   I will note that a 50% increase in interest rates will cause some serious increases in costs to consumers and businesses on any variable rate loans or on new loans. 

God Bless,

Branson