Even Lower Interest Rates?

The 10-year Treasury note yield to fall below 2%? BofA Merrill thinks so. For those who have managed to come away unscathed from the seemingly endless and ongoing downturn in the economy, mortgage rates are truly at unreal levels.

They expect the Federal Reserve to continue to try to push long-term interest rates lower to support the economy. BofA Merrill now predicts that the benchmark 10-year Treasury note yield will fall below 2% in the first half of 2011, from the current 2.58%.

If you have cash and you're looking to buy a rental property, get a mortgage for goodness sake. With such low interest rates, endless opportunities abound for strong cash flow opportunities. While the banks are giving the money away, use it and keep your cash liquid. Why wouldn't you?

If you can't qualify for a mortgage, join the large crowd. The banks don't want to lend to you. They're doing just fine making money lending back to the government.

Regardless of what camp you're in, there's no denying that interest rates are extremely low and will ultimately trend lower if BofA Merrill's prediction is correct.

Complete Article: BofA Merrill sees 'growth recession' -- and another dive in interest rates