http://markonmarkets.com/2009/10/further-affiants-sayeth-naught/ ...Calmly observing the changing world Mon, 30 Jan 2012 05:53:17 +0000 hourly 1 http://wordpress.org/?v=3.3.1 http://markonmarkets.com/2009/10/further-affiants-sayeth-naught/comment-page-1/#comment-160 mark Wed, 14 Oct 2009 22:03:19 +0000 http://markonmarkets.com/?p=659#comment-160 <a href="#comment-159" rel="nofollow">@Steve:</a> You make some great points, but while investors are no doubt comparing interest rates in a relative way, it would seem better to evaluate each investment on its own merits. Any objective assessment should make a good investor flee in terror from the entire bond market! In time, bonds' perceived safety may be shattered, and mortgage backed bonds seem a likely candidate for the worst performing tier in a bad class of investments. @Steve:
You make some great points, but while investors are no doubt comparing interest rates in a relative way, it would seem better to evaluate each investment on its own merits. Any objective assessment should make a good investor flee in terror from the entire bond market! In time, bonds’ perceived safety may be shattered, and mortgage backed bonds seem a likely candidate for the worst performing tier in a bad class of investments.

]]> http://markonmarkets.com/2009/10/further-affiants-sayeth-naught/comment-page-1/#comment-159 Steve Wed, 14 Oct 2009 18:03:58 +0000 http://markonmarkets.com/?p=659#comment-159 Mark, since alternative interest rate yields are so low, do you think investors are just giving up and accepting these currently (historically!) low mortgage rates because they don't have better places to employ their money? With the stock market crash still fresh in the minds of investors, mortgage interest rates may oddly be considered "a good return" and now that home prices are more realistic and lending standards have been strengthened, a level of investment safety has returned. As long as alternative investment yields remain puny, mortgage rates may continue to stay low if the demand stays strong ... and inflation expectations remain low. Mark, since alternative interest rate yields are so low, do you think investors are just giving up and accepting these currently (historically!) low mortgage rates because they don’t have better places to employ their money? With the stock market crash still fresh in the minds of investors, mortgage interest rates may oddly be considered “a good return” and now that home prices are more realistic and lending standards have been strengthened, a level of investment safety has returned. As long as alternative investment yields remain puny, mortgage rates may continue to stay low if the demand stays strong … and inflation expectations remain low.

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