Have We Hit The Bottom?
The uptick in the bond yield is indicating that the interest rate low has hit bottom. Yields have jumped 90 bases points in February, and this is causing world markets to do the same. As we see more and more Pharmaceutical companies' Covid-19 vaccines become available, this is giving hope that we return to some normalcy with this pushing the market and indicating that the low interest rates will start to creep.
So, is this a good thing or a bad thing? This really depends. If you are considering refinancing your home, making home improvements that would require a home equity loan or a cash out mortgage, or purchasing a new car, you would be affected by the increasing interest rate. If any of these things were on your mind, you may want to consider doing them sooner rather than later.
How much will these rates jump? I do not think we will see a drastic jump, but we will start to see the rates creep up. A lot of these factors will depend on the recovery of our economy and how long it takes for the recovery to play out, but rates will start going up sooner.
This is a perfect time to review your retirement plan. Refinancing your mortgage at these low rates would free up some money and take some of the pressure off your portfolio as the market fluctuates during the recovery phase, SMRT planning is here to help you get a good understanding if this is an option you should consider.