by John-Wetter-2310
‣ United States 10-Year Treasury Yield hits 4.86%. The 10-year yield is used as a proxy for mortgage rates and is also seen as a sign of investor sentiment about the economy.
‣ United States Prime Rate hits 8.5%. The United States Prime Rate is the interest rate that banks charge their best, most creditworthy customers.
‣ The Average 30-Year Fixed Rate Mortgage hits 7.91%. I think we all know what a mortgage rate is: The rate charged for a home loan. We haven’t seen 8% mortgage rates since the year 2000.
In fact, just less than three years ago, the average rate on a 30-year mortgage was 2.6%.
Why is this alarming?
The S&P 500 isn’t following suit.
The S&P 500 is less than 600 points from all-time highs.
The underlying economic conditions in the United States (and globally) when compared to the S&P 500 don’t match up at all.