Quote:
Originally Posted by Mysto
OK - I lied a little on the title.* I don't think anyone can predict interest rate changes but - Do any of you think that you get warning before CD rates make a major move?
|
No.
Quote:
Originally Posted by Mysto
In other words, if rates go down - is there usually time to lock in cd rates or do they move too quickly on goverment/market changes.
|
By the time you read the morning news, it's already too late.
Quote:
Originally Posted by Mysto
Trying to lock in some best rates. I'm only asking for opions based on the knowledge/experience/wisdom of the group. Thanks.
|
You can lock in the best rates every day, although the following day you may be long & wrong. A year ago 5% on a five-year CD seemed like a great deal, now I'm doing the penalty math to break it for a higher rate.
The best way to smooth the bumps is to keep refinancing the fixed-rate mortgage whenever it makes sense (for example when the payback is less than a year) and laddering the bonds/CDs.