CNBC In Which Bill Gross Predicts 4.5% Mortgage Rates

by Alex Stenback on February 9, 2009

Pimco Gross 4.5% Mortgage Rates

Link to the video above here.

Bill Gross, half-honcho at PIMCO, the worlds largest bond fund, says:

“I think at some point we’re going to see a 4.5 percent mortgage rate and the 10-year Treasury rate capped at some level,” he said. “When the Fed comes in to buy Treasurys that will be a big day.”

Goes without saying that such a move would benefit PIMCO tremendously, so some of this is Gross talking-up policies that will be to his benefit, but he’s been right before, and seems to have the ear of the Fed, so who knows.

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