Economists and bankers who have been clamoring for a Fed rate hike should be careful what they wish for, since rates at the long end of the yield curve look primed to soar. They are already up spectacularly over the last month – from 2.75% on October 2 to a high on Friday of 3.10% – after bottoming earlier this year at 2.23%. Now, with just a little more upward pressure, 30-year rates could lurch to 3.21%, since, technically speaking, the dam is close to bursting. If it does, you can kiss the housing market good-bye, along with the illusion of economic recovery that real estate inflation has helped sustain.
RICK’S PICKS
This post was published at Rick Ackerman on November 8, 2015.
Follow on Twitter
Recent Comments