I appeared on Stuart Varney’s show on Fox Business a few years ago and was asked what will happen when The Fed starts raising rates again (including letting the balance sheet shrink). My answer was “Kaboom.”
Well, The Fed is “normalizing” interest rates and it isn’t pretty for the housing and mortgage market. January pending homes figures were released this morning and they are down 4.7% from December. As the 30 year mortgage rate continues to climb.
It was the worst MoM reading since 2010.
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We are finally seeing mean reversion in mortgage rates after almost ten years of keeping interest rates repressed.
Is Janet Yellen really Urkel? Or is Bernanke, the Godfather of ZIRP and QE really Urkel? Or Powell?
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