Skip to comments.Pushin’ Too Hard? Mortgage Rates Jump To 23-Year Highs As Conference Board Leading Economic Indicator Declined To -7.6% YoY
Posted on 09/22/2023 4:32:53 AM PDT by Kaiser8408a
Is The Fed pushin’ too hard on rates to fight inflation? Or not hard enough??
Between the data and the overnight momentum in overseas markets, bonds are at their weakest levels in years. Mortgage-backed securities (the bonds that dictate mortgage rates) didn’t swoon quite as much as Treasuries, but as of today, it was just enough to push the average mortgage lender almost perfectly back in line with the highest 30yr fixed rate of the past 23 years. [30 year fixed 7.47%]
Conference Board Leading Economic Indicator declined -0.4%MoM in August, bringing the year-over-year change to -7.6%.
The Fed can’t seem to make inflation go away, despite what Janet Yellen says. The reason? While The Fed’s target rate has risen rapidly over the past year and a half, The Fed’s Balance Sheet is slowwwwwllyyyyyyyyyyyyyy unwinding.
(Excerpt) Read more at confoundedinterest.net ...
IMHO, there is still far too much excess money and irrational exuberance floating around the economy.
Interest rates should not be determined by unelected hacks that do not reside in the real world. They should be determined by the market.
They still have COVID Panic money to spend, so inflation won’t slow down until some time in 2025.
We’re 10 days from the trickiest month of the year.
Each of the last 4 democrat presidents has been worse than the previous.
Each claiming the title of WORST PRESIDENT EVER (up until that point)
$1T in mortgages need to be refinanced in the next two years at a higher interest rate! Buckle up
Records are made to be broken.
” far too much excess money and irrational exuberance “
And you would be correct .....
WE are in trouble ... the hacks at the levers of power are
fumbeling around trying to walk the razors edge .
We need 10% fed rates and a dose of reality now or we will revisit 1980. It may already be too late.
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