Consumer spending and asset prices both were boosted by them.
Raging mania to lock in mortgage rates when they were still at 3.2%. But now they’re near 5%.
Junk bonds are still in la-la-land though, Apocalypse but not now.
Is the spread heading to what happened in the 1970s and 1980s when the Fed battled blow-out inflation?
Buyers hobbled by spike in mortgage rates and sky-high prices. Builders hobbled by shortages and worst spike in costs ever recorded.
10-Year yield hits 2.31%, 30-year fixed mortgage rate hits 4.66%. And why the funny kangaroo-shaped yield curve says nothing about the economy.
And it has nothing to do with supply chains. Dear Fed, go have a look at the fruits of your labor.
“Tech” real-estate broker Compass and “tech” renters-insurance-seller Lemonade collapsed too. All eyes on Better.com’s delayed SPAC deal. I can’t wait.
Unfinished supply is amassing in the pipeline.
The Magic Number in 2018 was around 4.8%. In 2006, it was around 6%. But with today’s super-inflated home prices? Here are the signs.