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...
When the yield of the 3-month bond is higher than the 30-year bond yield, this is known as an inverted yield curve. It is a rare and unusual occurrence and we are seeing this today. This signals a potential economic recession in the future.
An inverted yield curve suggests that investors have a pessimistic outlook for the future of the economy. They are willing...
Lumber and 30 year Mortgage – weekly scale: FRED 30 year rates lag most mortgage rates already above 5%. It has been since 2018 since rates were above 5% and lumber was sub 300.00. High priced lumber (any high priced commodity) will eventually correct itself. High prices cure high prices. Now the pinch is on and rates are reacting. Cost of money is no longer...
Inflation is plateauing and likely to end flat in 2023, so what will that impact the markets?
Though inflation peaked at 9% last year and has been declining to 6.4%, CPI seems to be plateauing and may close flat in 2023, but this is not good news at all. Why? Because the Fed wanted to see the CPI or inflation coming down to 2% in a sustained manner.
Studying...
While it might not be the subprime/GFC “SELL” kind of situation, the real estate sector is undoubtedly facing headwinds.
With the most recent Fed’s preferred inflation measure, the Personal Consumption Expenditure (PCE) printing higher than consensus, maybe it’s about time we take the Fed’s hawkish commentary more seriously. To review, let us look at...
All the fixed tenure yields have broken above their four decades of downtrend. - 2yr, 5yr, 10 yr & 30yr
To note, the shorter end, the fixed 2 year tenure yield is climbing faster than the longer end, the U.S. fixed 30 year tenure government bond yield.
The year closing, it will be crucial to determine the trend transition; from this long-term downtend to uptrend.
Content:
• Difference between interest rate and yield?
• Why it is important to note of yield curve inversion?
• How to tell when Yields are inverted?
• What is the long-term trend for interest rates and yields
• How to manage a rising yield?
Disclaimer:
• What presented here is not a recommendation, please consult your licensed broker.
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