US Mortgage Rates Climb To Highest Since 2000, Mortgage Demand Falls To Lowest In Recorded History (Great Job DC!!) – Investment Watch

by confoundedinterest17

Blissful Columbus Day!

As I mentioned yesterday in my publish entitled “The Perils Of Fed Tightening In One Chart (Or Candy House DC!) Treasury Yield Curve Stays In Reversion And Inventory Market Declining As Fed Reduces Cash Provide Development,” The Federal Reserve is tightening its financial insurance policies to fight 40-year highs in US inflation brought on by 1) Biden’s anti-fossil fuels mandates, 2) extreme and reckless spending by Biden and Congress and three) extreme financial stimulus from The Federal Reserve.

One other casualty of The Fed’s tightening and discount in M2 Cash provide are … the mortgage and housing markets. The US mortgage charge has soared to 7.04% (highest since 2000) and mortgage DEMAND has fallen to the bottom degree in recorded historical past.

Right here is my chart from yesterday displaying the inversion of the US Treasury 10yr-2yr curve and decline within the S&P 500 index as The Fed tightens.

After which we’ve got this chart displaying the most-extreme overseas Treasury outflow since March 2020.

Not less than The Fed is predicted to begin reducing charges once more in March 2020.

Sure, Biden and Powell have reenacted Kevin’s well-known chili spill. And Ben Bernanke, the creator of QE from late 2008 was simply award the Nobel Prize in economics for distorting monetary markets.

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