Market Watch with Tom Waitt

June_20th_2012.mp3 Bottom In Rates    Interest Rates on 10 year U.S. T-Notes have likely seen the lows hitting 1.44% on June 1st all rates could start to rise including mortgage rates.  U.S. 10-year T-Note (Click For Larger Picture) Ten year U.S. treasuries have been as high as 2.4% in March 2012 and as low as 1.44% this month. These rates could rise to 2% shortly and as high as 4.3% next year. It is hard to believe at this level but normal 10 year interest rates historically are 7%. If rates normalize capital erosion could be staggering, many conservative investors could find their savings tied up in bond funds in the wrong place at the wrong time. Bonds are risky at current levels. Seniors and savers would welcome a 7% return but would hurt current 10 year bond investors. Rates will rise, mortgage rates will rise and this may boost home sales as buyers attempt to lock in low rate loans. The U.S. Federal reserve has pledged to keep short rates low for the next 2 years; however in