Get started

MORTGAGE30US

30-Year Fixed Rate Mortgage Moving Higher 9% (1M)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
FRED:MORTGAGE30USLong
by Seems_Legit_Research
1
The Fed Conundrum and the Housing Market CollapseThe Fed money tightening policies are using interest-rates as a lever to fix a balance sheet problem. Higher rates feed right back into the CPI, initiating the doom loop. After the financial crisis of 2008, The Fed employed a policy action to reduce the federal funds rate to a range of 0-0.25% for seven-(7) years, during which time the CPI fell. Post-pandemic (COVID), the CPI is 97% correlated to the Fed balance sheet. Looking historically, in 1980's, the Fed Rate was ~19% (real rate was 8%). Compared to today, the Fed Rate is under 3% and Real Fed Rate is at -6%. Folks already crying about a 3% Fed Rate. A colossal policy error in the making, or is everything going "according to plan"?
FRED:MORTGAGE30US
by shri30389
4