Posted on 04/14/2022 10:45:32 AM PDT by Browns Ultra Fan
Today, the US Treasury 10-year yield exploded upwards by over 12 basis points. With it, the 30-year mortgage yield is above 5%. And MBA Mortgage Purchase Applications are actually increasing.
Today’s bond market summary shows the 10-year Treasury yield up 12.7 basis points. Its the same all over the western world. Asia? Not so much.
Fear of further Fed fireballs coming from removal of the monetary punchbowl.
(Excerpt) Read more at confoundedinterest.net ...
Further Fed QT will cause strengthening of the dollar, capital outflows from Asia will grow intolerable for China.
Drink up now boys because we will be calling last call in a little while.
Mortgage rates under Carter were astronomical...prohibitive in fact!
A million years ago when I was getting my accounting degree, a finance prof taught a finance class that “half of the inflation rate is historical, based where prices have gone, and the other half is based on where buyers think prices are going.” Still makes sense today.
Yes people are buying homes rapidly before rates go higher.
Drink up now boys because we will be calling last call in a little while.
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I would love to see factual numbers, everything I see is stating mortgage apps down.
“ As NationalMortgageProfesssional.com reported yesterday, mortgage applications have fallen for 12 straight weeks. The last time mortgage applications increased from the previous week in the MBA’s survey was the week ending Jan.14, 2022.”
https://nationalmortgageprofessional.com/news/march-new-home-mortgage-applications-down-5
Common sense says high inflation rates eat up people’s savings for home. High mortgage rates always decrease home buying.
So, what is it? I can post loads of graphs and charts showing mortgage apps are cratering.
When we bought a house back in the 70’s, our interest rate was 13.5%. I believe the house was priced at 12,000.
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