America loves an underdog, a scrappy competitor who manages to beat the odds. By staying so low for so long, interest rates have not only beaten the odds in recent years, they've laughed right in their face. The question is, how long can interest rates keep doing it?
Of course, whether you are rooting for this particular underdog depends which side of the borrower/saver divide you are on. Mortgage borrowers have seen the cost of owning a home cut dramatically by record low mortgage rates. On the other hand, depositors in CDs, savings and money market accounts have seen interest on their savings all but disappear as bank rates approached zero.
Still no rise in sight
The performance of interest rates over the past five years was already remarkable, but perhaps never more so than this year. By several standards, interest rates should be rising. However, they have remained stubbornly low, and in some cases have continued to fall.
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Here are some of the ways in which low interest rates have beaten the odds:
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