When PIMCO bets against US Treasuries, you can bet that interest rates are headed up.
The headline this morning on Bloomberg reads: "Pimco Total Return Cuts Government-Related to Negative, Boosts Cash Assets." PIMCO is the most successful bond trading company in the US. I check Bill Gross's opinion on the bond market daily (when I'm not in Oklahoma working cows.")
Fixed rate assets like Certificates of Deposit will benefit, but mortgage rates will not. Mortgages are set to rise, as they have been doing for the past three weeks.
Even so, astute REALTORS and Mortgage Originators will do well if we keep our finger on the pulse of the market and communicate regularly with our clients. There is opportunity in ANY market.
I'm Mike in Tucson, your preferred Tucson Arizona Mortgage Lender.
SUNSTREET MORTGAGE llc ~ Correspondent Mortgage Bank
Offices (AZ) Mesa, Tucson, Sierra Vista, and Nogales.