Not exact matches
However, I only know is that when there is a
sudden shift
in the
market interest rates change dramatically almost overnight and if you are paying attention, you can lock
in a
rate that is much lower than if you wait a few more days.
The
interest rate will adjust according to the
market value, which might imply
sudden and unexpected
changes in the terms of your loan.
Because, even though bond investing is safer than other forms of investment,
sudden changes may occur
in the bond
market that increases the
interest rates that are being paid to bond holders.
The execution of this policy
change will be important since an unexpected, quick, or significant bump
in interest rates could cause a sharp
market reaction and produce
sudden volatility
in rates; slow, steady, and deliberate
rate hikes will be more manageable for the
market to absorb.
You have to be ultra careful because with this length of time holding the property a lot of things can go wrong and the
market can
change temporarily for the worst due to weather, holidays spike
in interest rates,
sudden oversupply etc...