Mortgage rate races toward 8% after hitting a high not seen since late 2000
Mortgage rates follow loosely the yield on the 10-year Treasury, which has been climbing this week.
www.cnbc.com
If Ford would re-introduce the 1996 F Series (9th Generation) pickups.....Buyers would be lining up before the doors opened.
They would not have to sell them for $70k. Keep the US Government out of the auto manufacturing and prices would drop by 50%.
Ford's profit margin would be greater.
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Something is breaking in financial markets — Here's what's behind the sell-off
The pain of recognition was acute for Wall Street on Tuesday, with major averages down sharply across the board.www.cnbc.com
I think the macro risk factors are changing.The hilarious thing is that there's nothing new in the macro conditions. The Fed is still saying what it's been saying. Inflation "eased" somewhat but is still positive, so things are getting worse but just not as quickly. Oil never got truly cheap and is back to being downright expensive, and with a near-empty SPR to boot. Republicans did nothing to curb federal spending despite two shutdown showdowns. The labor market is still ultra-tight because we had a generational shift (Boomer retirement) accelerated by the pandemic.
The last six months of what Greenspan would have termed "irrational exuberance" is the fault of traders, not the Fed or even fed.gov. I think everyone got a bit too clever in trying to front-run the Fed's eventual decision to cut rates. So we'll see what happens. Maybe it rips again because why not have triple-digit PEs alongside a 5.25 Fed target rate.
So, in other words, mortgage rates are normalizing again, getting away from the free money stimulus of the past few years that contributed to rapid increases in real estate prices in western Montana.Mortgage rate races toward 8% after hitting a high not seen since late 2000
Mortgage rates follow loosely the yield on the 10-year Treasury, which has been climbing this week.www.cnbc.com
Exactly.Bricknoses look cool, but trust me when I say that very few buyers want a truck like that. OEs have played around with stripped trim levels and the only one who bites are municipalities.
A large portion of the truck market consists if people who would have bought a German sedan 20 years ago or a Cadillac 50 years ago. Blame many factors, but Corporate Average Fuel Economy (CAFE) is right at the top of that list. It's been a huge distortion in the market, as government programs tend to be.
Nothing in the financial arena is "normalizing". And, if anything was normalizing we would not know it for at least 3 years.So, in other words, mortgage rates are normalizing again, getting away from the free money stimulus of the past few years that contributed to rapid increases in real estate prices in western Montana.
Mortgage Rates Chart | Historical and Current Rate Trends
Current and historical mortgage rate charts showing average 30-year mortgage rates over time. See today's rates in context.themortgagereports.com
I think the macro risk factors are changing.
So many ways to skin the cat. Just about to breach 65% preferred/baby bond/bond allocation which is probably about as high as I will take it. I waited 15 years for yields like this and still picking off a few names here and there when on sale, but more or less like you on a schedule. Ain't sexy and it ain't hard....it's simply delayed gratification and consistency.So today bonds selling, yields dip, and stocks move up.
It would tire me out following the day to day vagaries of the market. I just buy on schedule, as usual. Money comes in, a set amount gets invested, and that is that.
I agree - fancy 4 door pickups are the high performance 4 door sedan nowBricknoses look cool, but trust me when I say that very few buyers want a truck like that. OEs have played around with stripped trim levels and the only one who bites are municipalities.
A large portion of the truck market consists if people who would have bought a German sedan 20 years ago or a Cadillac 50 years ago. Blame many factors, but Corporate Average Fuel Economy (CAFE) is right at the top of that list. It's been a huge distortion in the market, as government programs tend to be.
Remember people buying overpriced homes with balloon notes, variable mortgages, etc. right before the 2008 crashLol. Anyways, the whole mortgage rates are historically low is correct. But it is disingenuous as QE changed everything. You are braindead if you think the global economy can function on major countries' rates being north of 12%.
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Yep... A lot of that old terminology from that period has been forgotten. The young people have been "riding the wave".Remember people buying overpriced homes with balloon notes, variable mortgages, etc. right before the 2008 crash
Jeffrey A. Tucker Saved the best for the last line.5 Financial Storms on the Horizon
www.theepochtimes.com
Here is an example I spoke of.So today bonds selling, yields dip, and stocks move up.
It would tire me out following the day to day vagaries of the market. I just buy on schedule, as usual. Money comes in, a set amount gets invested, and that is that.
FOMC Rate Hike Market Probabilities:
November - 24.3%
December - 39.8%
January - 31.5%
So........... From your "perspective" is this good... or ... bad ? What does your crystal ball say ?FOMC Rate Hike Market Probabilities: after JOBS report.
November - 32.6%
December - 49.6%
January - 49.5%
So........... From your "perspective" is this good... or ... bad ? What does your crystal ball say ?
The global economy needs higher rate shock but will bode poorly for most people. Rates will continue to go higher until unemployment ticks up. Once we start seeing unemployment and job starts decreasing, I intend to buy TLT.
Understood. It could be a long wait to see unemployment and job starts change much. We are "leap frogging" inflation / wage increase / inflation / wage increase...
If you bought TLT today and the changes took place this year, it will still take you 4 years to double your money. Maybe 2 years to buy a house.
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Spent some time today (4hrs) driving to and from the range. I wanted to dive deeper into Enphase as it does not get the daily coverage Tesla does. With that said, I decided to listen to videos/podcasts led by the solar installer industry vs. your typical Wall Street analysis.
Found this to be insightful.
I am working on updating my investment portfolio as I no longer believe many of the stocks I own, should hold a sit. Two examples would be Apple and Google; both great blue chips, which is why I have them as individual positions. But I will have enough exposure to them through QQQM and they do not fit my thesis around direct exposure.
Right now, my ROTH and Rollover IRA are positioned to rebalance to 65% QQQM, 20% TSLA, and 15% ENPH . Currently, around 60% is in SGOV.
Throwing money at the "pandemic" for 3 years dug a deep hole.Presented by Nicholas Wealth Management
The market, jobs, economy and the Fed
Markets continued to slump last week as bond rates hit levels we haven’t seen in 16 years. Suddenly, a five-year treasury yielding 4.7% isn’t so bad when compared to the volatility of the stock market.
Whether we like it or not, much of the market is based on feelings; sure, they give it fancy terms like “market sentiment,” but that’s saying the same as mood — and the current mood seems to be bad. People are on strike, from auto workers we rely on to make the cars we use to get around, to health care workers we rely on to keep us healthy and actors we rely on to entertain us. So why should markets be in a better mood? If we don’t feel well, can’t get around or lack entertainment, why shouldn’t we be cranky?
Lots of people have exhausted their savings and run up their credit cards, so they can’t even get satisfaction from buying something they don’t really need. It all feels off. The economy is still moving along, but for how long? In general, interest rates are grinding things down, personal debt is climbing, wages aren’t keeping up with inflation and hours are being cut back.
The ADP® employment report added a measly 89,000 jobs in September, far short of the consensus estimate and nearly 100,000 less than the revised August number. But on Friday, the Bureau of Labor Statistics (BLS) employment situation report (also known as non-farm payrolls) for September came in at 336,000, blowing away the consensus estimate and significantly higher than August. Meanwhile, the unemployment rate stayed at 3.8%.
Will these numbers stay the Federal Reserve’s hand at their next meeting? Or will it give them the green light to continue to dither and possibly drive us into a recession, reversing a promising year? Perversely, markets finished the week up, even as the treasury yields that caused concerns in prior weeks rose as well. It will take a few days for markets to fully digest the recent jobs data, but it feels like we’re watching a trainwreck developing in front of our eyes in slow motion.
Burning down the house
Ever wonder why Congress has such a low approval rating? According to Gallup, only 17% of respondents said they approved of the way Congress is handling its job in September. Granted, that was last month when the government was on the verge of a shutdown, so maybe that explains the dismal approval rating. But the problem with that logic is that the last time Congress had a favorability rating of 50% was June 2003 — 20 years ago!
Last week, a small group of Republicans seemed to blow up the House of Representatives and throw the government into a new state of turmoil when they forced a vote to remove Speaker Kevin McCarthy over the budget dust-up — the first time ever a House speaker has been booted from the position.
We’ve previously said there would probably be fewer (or lower) hurdles to jump in the second half of 2023 and that markets would likely push higher, but these self-inflicted wounds seem to be getting to be too much. These mind-boggling miscues are coupled with the Fed fixated on lowering inflation. Higher rates are giving people options they didn’t have in a zero-rate environment, which is coming at the expense of equities. As long as rates remain at these levels, the cost of doing business will remain higher and earnings will suffer. Plus, the market will likely limp instead of roar into the year-end and a promising year will have been frittered away.
The government also should stop spending; we have added over $10 trillion to the deficit since 2019, without any tangible benefits. We spent money we did not have on things we did not need. The solution seems to be simple: Curtail government spending, which will help lower inflation and allow the Fed to back off. That, however, would require leadership, not politics.