Forgotten Your Password?

Need to Register?

Question Icon

When is it ideal to purchase bonds?

I know bonds rates fluctuate opposite of mortgage rates. When is the best time to invest in bonds, when rates are high like they are now - at the highest in 7 years, or when mortgage rates are lower? by urekuddo-8551856 from Auburn, California. Oct 4th 2018 Reply

William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

No one has a crystal ball.. so the future cant be seen.. and for investment advice, you should probably look at investment websites rather than mortgage sites.. this all being said.. as far as interest rates goes.. the projection is that rates will be higher, but understand that the rates have been held artificially low during President Obama's administration by the federal reserves aggressive purchasing of Mortgage Backed Securities *(MBS). Since after President Trump took office, the market has gone bonkers... and although the federal reserve has backed off on the purchasing of MBS's in the last 2-3 years of Obama, they have eased even more during Trumps term... this is bad for rates, which is why rates continue to climb. So as far as the bond market is concerned.. The payout on bonds will have to increase to attract investors.. what's the right ratio? When should you get in? When should you get out? Who knows? I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

Oct 5th 2018
Subscribe to our news feed.