30-Year Fixed Rate Mortgage Average in the United StatesFRED
Description
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30-Year Fixed Rate Mortgage Monthly
Well I guess I'm glad my mother-in-law's basement isn't a total dungeon.. What's sunlight? I'm familiar with grass because that's eye level when I'm looking out our window. Big brother JP, the head of the Fed, says rates aren't going anywhere any time soon, and we've all heard the fear mongering of 8% mortgages coming. Why would anyone want a house when you can load up on lumber and build a tiny home on your in-laws side lot? Life hack; build one in your parents backyard and you have a vacation home. Well lets all hold hands because the mongerers might be on to something.
Chart / RSI / Momentum
Rates previously pierced an important level of resistance (Red Solid) back in October and topped out just north of seven percent. Fast forward ten months and we're back retesting the same level, but this time we have a golden cross (Highlighted); a first on this chart. The RSI has also broken back above 70 level, indicating the strength of the trend to continue, and invalidating the previous bearish divergence (Teal Solid). After breaking past a previous level of significant resistance, Momentum has broken past it's previous peak (Teal Dotted) and continued it's trend higher; another indication of a strong trend.
What Seems Legit?
30-Year rates crackin' nine percent because everything is signaling us higher.
Chart Key Red Solid = Important Level of Resistance / Support Teal Solid = Divergences Teal Dotted = Momentum Level of Resistance Green Box = Resistance / Target Area Highlighter = Golden Cross / RSI 70 Level Break High
I have a fib retracement back to 5%, but that may not happen until the fed finishes breaking things. I see we just broke through that magical 7% long term resistance level for the second time. That is not good, especially if it retests and holds, then the 9% numbers you talk about could be in play. But, overall it is a mathematical certainty that prices in homes will have to come down or the rates come down, as people cannot afford both levels to continue. Or, average wages are gonna have to skyrocket, and Powell would not like that at all.