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Highest Mortgage Rates Of 2024 May Be Pulling Demand Forward
Earlier this week, while editorializing around what I (maybe hyperbolically, maybe justifiably) described as an "awful" read on new residential construction in the US, I noted that according to Redfin, monthly housing costs for Americans hit yet another new record earlier this month.
That observation, in turn, prompted me to not-so-gently note that "thanks" to the run up in bond yields since last week's CPI overshoot (more than 20bps on the 10-year if you're keeping track at a home you're golde
It’s best to stand still during thunderstorms.
Shouldn’t you… seek shelter?
I reckon high rates are good news for now, Walt. The Fed took their shot, raising rates to an historically modest but impactful level. Bonds are high and no one’s buying them, so they’re pressuring matters higher, extending the effect of the Fed’s hikes. All is well for now. Hoping we see some loosening this summer and the autumn bodes well for the market.
Are ARMs becoming more popular? I would think getting a 5 year reduced rate, while the rest of the decade’s geopolitical and financial issues play out, would be viable option for households. Cross the reset bridge in 2029.