Turmoil in Washington Could Be Good For Rates
Long term interest rates can hit some pretty rough patches. There is always something going on that drives them up or down. This week we've seen some changes because of the turmoil in Washington. The changes have been to the good because the news is bad.
We cannot predict with any certainty what is going to happen long term, or even the next day. Often long term interest rates or pricing for them changes daily or even during the day. Yesterday signaled some better rates as the independent prosecutor was brought into the mix. How long will it last? No one knows.
We've seen rates go up this year based on the expectation economic growth would increase. When turmoil such as we are seeing this week happens though, that expectation dims. So this week it is good for rates. Next week, anybody's guess.