Inflation is bad for interest rates and it’s at the highest levels in decades. But the housing market has a far bigger problem.
Source: Kevin Litwicki MBSLIVE
Highest Inflation in Decades, But Housing Has a Bigger Problem
What Are Rates and Housing Worried About?
In the past 2 weeks, there’s been big news about inflation and seemingly big news about Fed policy. Both are threats to low interest rates, but not just yet, apparently.
Source: Kevin Litwicki MBSLIVE
What Are Rates and Housing Worried About?
Big Inflation Scare, But Rates Remain Resilient
The 70’s and 80’s brought unforgettable economic lessons about the impact of inflation. Since then, certain market participants have been watching inflation like hawks, even when they didn’t need to.
Source: Kevin Litwicki MBSLIVE
Big Inflation Scare, But Rates Remain Resilient
Rates Reacted to Jobs Report, But Not Like You'd Expect
Rates are driven by bonds, and as far as the bond market is concerned, much of the week was spent waiting for Friday’s big jobs report. Rates have a clearly-defined reaction function when it comes to the jobs report. Specifically, more jobs = higher rates and fewer jobs = lower rates.
Source: Kevin Litwicki MBSLIVE
Rates Reacted to Jobs Report, But Not Like You'd Expect