Unless we get one more up for a double top, mortgage rates have topped out after breaking bearish rising wedge structure.
Note topped out does not mean it will collapse. it will take time for rates to drop further.
Note topped out does not mean it will collapse. it will take time for rates to drop further.
Note
BINGO!!Note
Mortgage rates continue to fall as expected.Trade active
Dec 2023 I called the top in mortgage rates. 2 years later I was right.However, I have to change my position because of recent events, such as Trump being elected and his tariffs or self-imposing taxes on Americans, along with tax cuts for corporations, etc.. the inflation outlook has changed dramatically. The market is also sensing this as we now have a complete rate divergence.
FED is lowering rates while the free market is raising rates on the long end. I am removing my position that we topped out in rates.
Trade closed: target reached
It is now starting to make sense why there was a divergence between 30-year rates and the FED. Despite lower inflation (likely due to recession) rates on 10 and 30-year bonds are rising and the dollar collapsing.
Trump's behavior has caused a loss of TRUST from the global community.
Real Macro Economic Investing
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Real Macro Economic Investing
patreon.com/Realmacro
patreon.com/Realmacro
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.