The day after

The bond market is down modestly at the moment, as the stock market is trying to make a comeback following yesterday’s significant sell off in all major stock indexes.  Interest rates have been bouncing around in a tight channel since late May, creating unprecedented opportunities for people to capture incredibly low interest rates.  Thankfully, the Fed extended “Operation Twist” last Wednesday.  This program has made the Fed a significant buyer of long term bonds for a while, and is partially responsible for the crazy low interest rates we have been enjoying for the past couple years.  Given the Fed’s commitment to hold down interest rates, and the continued global economic turmoil, we feel that low rates will be around for a while.  This takes much of the pressure off of longer term interest rate locks.  However, in the short term, we are suggesting a locking stance as the volatility in the market continues!