Over the last few years, interest rates have been relatively flat. Financial professionals have been doing their best to predict future movements. Investors expect them to rise each and every year. Well, neither the predictions nor the rise has come through as anticipated.

Most agree that predicting rate movements over a short period of time should be easier than over a long period of time. Even though we agree, we are wrong.

The fact of the matter is that rates rise and fall over longer periods of time than you would expect. To expect rates to be at 6-7% today or by next month is unrealistic, it will take at least another 5 years to get back to the aforementioned rate.

The catalyst for fixed rates is the 10 year Treasury Bond. Take a look at how it has performed over the last 20 years and ask yourself: Why would the next 12 month be any different than the last 20 years?

Don’t wait for rates to spike, it will not happen and will cost you more to wait. If you are earning 3% now in whatever you have your money in, 4.70% doesn’t sound all that bad. Don’t sacrifice 1.70% more in earnings and hope your future rate predictions come true.