Ludwig von Mises has some great quotes as well:
“A monetary expansion results in misinvestment of capital and overconsumption. It leaves the nation as a whole poorer, not richer.”
“Continued inflation must finally end in the crack-up boom, the complete breakdown of the currency system.”
US 30-Year Mortgage Rate Hits Fresh 23-Year High
United States Mortgage Rate
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($726,200 or less) in the US increased for a sixth consecutive week to 7.70% in the week ending October 13th. This marked a new high since November 2000 and led to a drop in demand for home loans to a 28-year low. The rate on a five-year adjustable mortgage surged by 19 basis points to 6.52%, the second-highest in MBA data dating back to 2011. Meanwhile, mortgage rates continued to increase this week in line with Treasury yields, as a stronger-than-expected US retail sales report indicated that the Federal Reserve might need to raise interest rates once more.
Oil Jumps by Over 3% to 2-Week High
Oil prices extended gains to over 3%, with Brent crude futures rising to nearly $93 per barrel, the highest in two weeks following Iran’s call for a Muslim countries’ embargo against Israel. Tensions escalated in the Middle East after a blast at a Gaza City hospital killed about 500 Palestinians on Tuesday, with Israel denying that it carried out the attack. Meanwhile, industry data showed that US crude inventories dropped by about 4.4 million barrels last week, far exceeding forecasts for a 300,000-barrel decline. Elsewhere, the Venezuelan administration and opposition leaders on Tuesday agreed to electoral guarantees for the 2024 presidential elections, paving the way for possible US sanctions relief that could increase global oil supplies.
10-Year Treasury Yield Top 4.85%
United States Government Bond 10Y
The yield on the US 10-year Treasury touched a fresh 2007-high of 4.85% on Wednesday, before stabilizing at 4.83%, as economic indicators continue to signal a robust US economy that can endure higher interest rates for an extended period. Retail sales rose more than twice the market forecast and industrial production unexpectedly increased last month. Traders also await more comments from several Fed officials this week, including an appearance by Fed Chair Powell before the Economic Club of New York on Thursday, for further insights into the central bank’s next steps. On Monday, Philadelphia Federal Reserve President Harker said that at this point policymakers should not be thinking about any increases in interest rates