Does a five year fixed rate bond make sense or is it too long?

adindas

People will need to have a crystal ball to know that your decision will be correct in five year time and looking back.

Generally, people will fix for a longer duration (e.g five years) if there is a higher probability that the mortgage rate will be going up in the next five years.

What people could see here is that it is recently published that the inflation rate in the US, oil price is coming down. So there is a higher probability that the mortgage rate will follow this pattern.

bristolleedsfan

adindas said:

Generally, people will fix for a longer duration (e.g five years) if there is a higher probability that the mortgage rate will be going up in the next five years.

If still talking about fixing savings, surely is the other way around, will fix for 5 years if anticipate mortgage rates will be lower in coming years ....