Back in 2006 I was expecting 30 years fixed to be around 8% by now. Obviously I was wrong.
My guess is that at some point Social Security will become means tested and that the government is committed to keeping asset values as high as possible. This means low rates to keep the 401k’s up and to mitigate the lost of housing values as much as possible.
Keeping 401k’s up will allow more people to be means tested off the rolls.
I have come to the belief that the government will do anything even tolerate inflation to keep the stock market up as high as possible.
