“This Won’t End Well” – Mortgage Rates Spike To 4-Year Highs

Growth? Inflation? Be careful what you wish for, as the surge in Treasury yields has sent mortgage interest rates to their highest in four years, flashing a big red warning light for affordability and home sales in 2018…

The U.S. weekly average 30-year fixed mortgage rate rocketed up 10 basis points to 4.32 percent this week. Following a turbulent Monday, financial markets settled down with the 10-year Treasury yield resuming its upward march. Mortgage rates have followed. The 30-year fixed mortgage rate is up 33 basis points since the start of the year.

https://www.zerohedge.com/sites/default/files/inline-images/2018-02-08_8-12-00_0.jpg?itok=19to-UuG

Will higher rates break housing market momentum?

As the following chart shows, that surge in rates will have a direct impact on home sales (or prices will be forced to adjust lower) as affordability collapses…

https://www.zerohedge.com/sites/default/files/inline-images/2018-02-08_8-20-26.jpg?itok=6sqF2Jn9

Source: ZeroHedge

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