Tuesday, November 15, 2016

Real Estate Bubble; "Rates have now moved nearly a half a percentage point higher since Donald Trump was elected president"

"The average contract rate on the popular 30-year fixed mortgage hit 4 percent, according to Mortgage News Daily, a level most didn't expect to see until the middle of next year...

The higher interest rates are,the higher the payments are, 
the less house home buyers can purchase with the same monthly payment,
the lower eventual residential real estate prices go

"The situation on the ground is panicked. Damage control," said Matthew Graham, chief operating officer of Mortgage News Daily. "People were trying to lock loans quickly last week and are now facing a tough choice to lock today or hope for a bounce. Many hoped for a bounce last week heading into the long weekend and we obviously didn't get it."

Mortgage rates follow loosely the yield on the 10-year Treasury bond. That yield on Monday hit the highest level since December...

Higher mortgage rates, however, will throw a wrench into an already shaky housing recovery.

Which was created by the Federal Reserve lowering interest rates
and buying bonds with pretend money

...During housing's recovery from the worst crash in history, historically low mortgage rates allowed prices to gain quickly and, more recently, to rise far faster than both income and employment growth.

= Central Bank Created Real Estate Bubble
among others

Economists at the Mortgage Bankers Association are now predicting that rates will, "trend higher than we had previously forecast, which will more quickly decrease refis."...

"No shit" the man said after the 'economist' identified the current situation
without predicting higher rates before they happened...

When bond yields go up, the value of bonds go down


Red Flags in Residential Real Estate Foreclosure Acitivity


Why so many have been upset with the status quo of the 'establishment'


When the US dollar goes up, the price of oil goes down, as oil is priced in US dollars...


"Oil, at least that destined for Europe, is homeless and is not being allowed to disembark after shipment"


So now what? “breadth thrusts”


Can stability destabilize?


Russell Clark; "A darker less safe world"