You didn’t think rates would just drop in a straight line did you? What would be the fun in that! In all seriousness I don’t put to much stock in this recent move higher. When rates drop off a cliff it’s not unusual for there to be a small rebound. Plus it’s the beginning of the year so portfolios are rebalancing for the new year.

I’m going to keep this update short because I’m finalizing my 2023 Year End Report which will be going out next week. I did want to share a chart to show from that report which might give an indication on where we are headed:

Looking pretty good right? Keep in mind that things change rapidly but it gives a good picture of what kind of year we might be in for. Current expectations is that the Fed will cut rates 5-6 times this year probably starting around March. If that plays out we could be in for a really good year.  That will depend on all the usual suspects that I’ve talked about all year inflation and job growth (or lack thereof).

One last thing, for this rate chart I did one encompassing all of 2023 to show what rates have done this past year. Even with this latest move higher we are smack dab in the middle right now of the range we have seen over the last year.

All I know is that my New Year’s Resolution is for lower interest rates!