If the fed wasn't holding them down at artificially low levels? Say 10 year treasury yields. Another question: if the queen had balls would she be the king?
Fed is giving money away from the printing presses take the money it's free it doesn't cost the Fed any money to print the money from thin air. no interest on the loan since it free money. who wouldn't want a 1 million dollar loan at .25% interest?
My question is, and there probably isn't a correct answer. What would the market rate of interest be for a 10 year note that wasn't being artificially supressed by the Fed? My guess is like 8%.
I believe if the fed did NOT ARTIFICIALLY drop rates lower you would see them probably in the 6-8% range in my opinion, mortgage rates are going to surge, 4.5% 30 yr fixed mortgage rate was a gift, you will probably never see rates that low again, by 2010 30 yr fixed will be above 6%, over the next 2 years rates will climb to 7-8%.