This is a syndicated repost courtesy of Confounded Interest – Online Course Notes for Financial Markets. To view original, click here. Reposted with permission.
US Real GDP seems to be booming (see yesterday’s Atlanta Fed GDPNow Report for 4.2% growth) while The Fed continues to raise their target rate and unwinding its $4.4 trillion balance sheet. The result? The US Treasury 10-year yield has risen to its highest level since 2014 (red line). And Bankrate’s 30-year mortgage rate survey is near its highest level since 2014 as well.
Liquidity moves markets!Follow the money. Find the profits!
2014 is the magic year for interest rates since The Fed’s Treasury Note/Bond and Agency MBS purchases were halted on October 29, 2014.
Seattle and Las Vegas are the fastest growing cities in terms of home prices (over 10% YoY) while Chicago and Washington DC are the slowest growing (3.6% and 3.3%, respectively).
Meanwhile, gold has a rounding bottom.
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