Economists and bankers who have been clamoring for a Fed rate hike should be careful what they wish for, since rates at the long end of the yield curve look primed to soar. They are already up spectacularly over the last month — from 2.75% on October 2 to a high on Friday of 3.10% — after bottoming earlier this year at 2.23%. Now, with just a little more upward pressure, 30-year rates could lurch to 3.21%, since, technically speaking, the dam is close to bursting. If it does, you can kiss the housing market good-bye, along with the illusion of economic recovery that real estate inflation has helped sustain.
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Housing market?
Funny you should mention it!
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NINJA Loans to Infinity……………and beyond!
Thought the expectation here was that rates(at least 10 year) were going to drop.
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Careful what we wish for, Rantly. I haven’t changed my 1.64% projection for the 30-year, but it will come with America’s slide into Depression. Take a look at the long-term bond charts and you tell me whether the nasty slide since April looks bearishly impulsive or merely corrective. RA