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> It didn’t take a genius to predict interest rates were going to rise. Locking cash away for 10yrs in very low % return vehicles seems stupid? Everyone is a g
by csomar 4y ago
> It didn’t take a genius to predict interest rates were going to rise. Locking cash away for 10yrs in very low % return vehicles seems stupid?
Everyone is a genius in hindsight. You could have made millions out of a few thousands if you were able to predict an interest rate regime change. But where are your millions?
- gonehome 4y agoI locked in a 30yr fixed mortgage at 2.49% right before the spike because it seemed obvious? Not sure if that counts, but that should be enough cred that I made a large bet on my prediction when it mattered.
- rurp 4y agoYeah plenty of folks I know felt similar, myself included. I bought a home during the pandemic. Prices had increased a fair amount in my area which worried me, but the ability to lock in such a low rate for 30 years more than offset that concern.
- naijaboiler 4y agoyou don't need a to be a genius to have known that the 2.4% interest rate won't last for ever. Everyone in america with a mortgage knew that and rushed to re-finance. So why did bank managers not know. i think its more like, they had no other good options to park their cash. So they took the best of a bunch of bad options
- gonehome 4y agoOf course, the actual best bad option would have been to just wait and lower interest rates if they must in the mean time.
- rurp 4y agoEh, one could be pretty sure that average rates would be a lot higher than 1.5% over the next decade but not expect them to spike this far so fast.