Although the first three weeks of the year weren’t inconsequential, investors were understandably eager to react to Trump’s first week in office. One of the most notable developments was a break higher for stock prices after weeks of stagnation. This had the unfortunate effect of pushing bond yields (aka “rates”) even higher.
Source: Kevin Litwicki Universal Lending
Rising Rates, Higher Prices, and Record Low Inventories

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Volatility is back with a vengeance since the election–especially for rates. Just when it looked like things might be calming down, this week’s Fed Announcement resulted in a spike to the highest levels in well over 2 years. As various media outlets rush to cover the drama, some stories have overplayed the drama while others fell short of relaying the true severity of the move.
Source: Kevin Litwicki Universal Lending
Rate Spike is Better and Worse Than You've Been Told

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While the Fed has managed to avoid embarking on a 4th round of quantitative easing (or “QE,” a term referring to large-scale asset purchases by central banks), European QE has been going full tilt since early 2015. Markets began to suspect the European Central Bank (ECB) might make its own tapering announcement in recent months and this week, it pulled the trigger. Will the fallout be the same for rates this time around?
Source: Kevin Litwicki Universal Lending
Europe Tapers, But Without The Tantrum

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Interest rates surged to 2-year highs this week, apparently in response to Wednesday’s news that OPEC countries struck a deal to limit oil production. True, if OPEC is willing to do what it takes to push fuel prices higher, it only adds to the inflationary fears already pushing rates higher. But even though the OPEC news dominated this week’s headlines, there are more important things keeping housing and mortgage markets up at night.
Source: Kevin Litwicki Universal Lending
What's Really Keeping The Mortgage Market up at Night?

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The post-election spike in mortgage rates kicked into higher gear this week, with most lenders near the worst levels in more than 2 years. In bittersweet juxtaposition, this week’s Existing Home Sales data (from October) was the best in nearly 10 years! Is the writing on the wall for the housing market? Yes and no.
Source: Kevin Litwicki Universal Lending
Rapidly Rising Rates: Writing on The Wall For Housing?

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