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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.
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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