30Y Mortgage Rates Decline To 6.64% (Repeat Of 1978-1981?)

#bubble, Banking, Bernanke, CMBS, ECB, Economy, Existing Home Sales, fannie mae, Fed, Freddie Mac, GDP, Gold, Housing, Inflation, Mortgage, New Home Sales, Powell, PPI, REITs, Silver, SPX, Stocks, Treasuries, Treasury, Uncategorized, Wages, Yellen, Yield Curve 1 Minute

The good news? The US 30-year mortgage rate fell slightly to 6.64%.

The bad news? It seems to be a milder repeat of the Ford/Carter years of the late 1970s/early 1980s. Rising 10-year Treasury yields and 30-year mortgage rates during the Ford/Carter years … and early Reagan years. The difference? The Federal Reserve is fundamentally different today than previously. With Bernanke/Yellen, The Fed became more “activist” (like Obama/Biden-appoointed District Judges). Powell is returning to the Yellen model of Fed activism … not doing much.

Now the market awaits a rate cut from The Fed at the next FOMC meeting. But 30-year mortgage rates are most closely related to the 10-year Treasury yield than the short-term Fed Funds rate. Theoretically, The Fed could cut their target rate by 25 basis points and mortgage rates could be uneffected. Or even rise.

Here is a video of Fed Chair Jerome Powell trying to lower mortgage rates.

What about the mortgage rates, Fawlty?

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Published by confoundedinterest17

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