The rate went up a lot in the last a few days on thin trading.

The real rates will be lower after Jan 4th.

Happy Holidays.

Eric, what's the base of this prediction? Does this include fixed and arm rates both? thanks!

1)The bond auction shows the strength late this afternoon. 2)The technical of the bond trading have strong resistance at the current level. 3)The current interest rate is at the higher end of the trading range. 4)It's not the best interest of the Fed and Obama Adminstration. Once the rate is over this level, the rate should go down(Fed can control by purchasing more MBS)...Until sometime in 2010. 5)Even in 2010, when Fed stop purchasing MBS, I don't think the rate will go up a lot.