Skip to comments.Treasury Yields Hit New Record Lows
Posted on 07/23/2012 9:21:31 AM PDT by Qbert
NEW YORKThe search for financial safety caused by deepening worries about Europe's debt crisis fired up demand for U.S. Treasurys, dragging yields on 10- and 30-year debt to new record lows.
Benchmark 10-year notes yielded 1.409% as U.S. trading began, piercing below its previous intraday record of 1.437% set on June 1 on the back of a weak U.S. employment report. The 30-year ...
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Look at this guys charts. Scary!
Why on earth would anyone waste their money on a valueless T-Bill?Hey if you want to buy paper cheap,get a roll of t.p.
Good time to refi...again.
Good time to refi...again.
With the economy as unstable as it is,The last thing you should do is refinance your house.Why take the risk of loosing it.To a sudden loss of your job.
I like knowing that I have NO mortgage payments.All I have to worry about is if the economy go’s south so bad that the town will attemp to steal the home through increases in the property taxes.
Some towns and cities are already doing that,Espechially in California.
My ajustable rate mortgage is tied to this.
The rate adjusts annually, and has dropped each year for the last three years.
“All I have to worry about is if the economy gos south so bad that the town will attemp to steal the home through increases in the property taxes.”
After the Civil War, the plantations in the south were broken up by levying taxes the owners could not pay. It may only be a matter of time before our benevolent state uses taxation power to drive the middle class from their rural and suburban homes and into government owned multifamily public housing projects.
Do I take my cash savings and pay off my adjustable rate loan (this year at 2.8%) or do I hold on to the cash? As long as I can make the payment at these low rates it feels better to have the bank as my partner and the cash in my hands.
“The last thing you should do is refinance your house.”
Unfortunately, we currently have a mortgage. Refi’ing would get us closer to paying off that burden quicker (if loan costs vs savings made sense). Would not consider cash-out! We have no other lien/loan type payments. Congrats to you and all others that have paid off their mortgages.
“Do I take my cash savings and pay off my adjustable rate loan (this year at 2.8%) or do I hold on to the cash? As long as I can make the payment at these low rates it feels better to have the bank as my partner and the cash in my hands.”
I’m in the same boat as you, I guess.
My ARM is at 2.875 and has gone down the last 3 years.
Unstable and unpredictable future makes me try to hold on to my cash assets and find ways to preserve the value.
I got into a bind and lost a house 07 but God has blessed me and I decided to let that house go and build one.
My house is not finished, likely never will be but I sleep like a baby.
I wish for you to sleep well also but 2.8 is unreal and it keeps you from being a “target”. If your home is paid off you are more likely to be sued since you have a great asset. Houses are not selling and you may need to move or bug out/run away at some point in the future the way the feds are acting. Plus the revenuers are more likely then not to raise prop taxes sky high to force you to abandon your home.
Best wishes whatever you do
Converting your adjustable-rate mortgage to a fixed rate at this point seems like an excellent idea
First, at the current rate of inflation (±3%), you're essentially getting 'free' money when you factor in the mortgage tax deduction. Rates are right around 3.5%. Depending on your situation, you might have a net-negative rate, meaning, you're earning money on the loan.
Second, the Fed is about to embark on another round of Quantitative Easing, ie. inflationary printing. While this may force rates down a little, it's clear that the market is saturated. Banks are sitting on gigantic un-lendable piles of money, because most people are at or near the 'underwater' mark on their home loans. If you don't have at least 20% equity, the post-2008 lending rules make it very hard to qualify for a loan. Yes, rates may dip a little more, and they may well go down and stay down. But eventually (no one knows when) the market will begin to rebound, either through force or starvation (a war, or pent up demand for consumer goods). At that point, if you have an adjustable mortgage, look out, rates will spike.
It seems to me that arguably your most important asset is your house, and leaving it to the whims of unknown entities, in terms of your rate, is extremely risky.