rates

Inflation Alert! Fed Governor Michelle Bowman: “Inflation continues to be too high, and I expect it will likely be appropriate for the Committee to raise rates further and hold them at a restrictive level for some time”

Bowman calls out she is in the rates higher for longer camp while leaving room to continue raising rates. She calls out the PCE index rising but fails to mention that it was being undercounted previously and is actually HIGHER going back the last two years and registered at 3.5% in August, still WELL above the 2% …

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Bidenomics At Work! Mortgage Rates Hit Almost 8% (Highest Since July 2000 Under Bill Clinton), Deficits This High Usually Occur During Recessions And HIGH Unemployment

by confoundedinterest17 Joe Biden, who has always been a compulsive liar but at least sounded cognicent, is now babbling and whispering that Bidenomics works. But for who? Clearly not for first time homebuyers or people looking to move. Bankrate’s 30-year mortgage rate is up to almost 8%, the highest since July 2000 and Willy Slick …

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Joseph Brown: The rapid depletion of the Reverse Repo facility, with $1 trillion drained in just 6 months, signals a concerning trend amid government borrowing acceleration, ultimately leading to significantly higher interest rates.

from Joseph Brown: The Reverse Repo facility has seen $1 trillion drain out in just the last 6 months What happens when it runs out? Its important to remember what this account is for, and where this money came from in the first place 🧵👇🏼 When all the money printing started in 2020, this account …

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Rising Rates Likely Hit Bank Balance Sheets in Quarter, Lenders need to pay up to keep depositors, pressuring earnings

From the WSJ: A surge in interest rates likely worsened unrealized losses on bonds and loans held by U.S. banks in the third quarter, further straining their balance sheets as they face pressure to pay more to keep depositors. Unrealized losses were a key cause of Silicon Valley Bank’s failure in March, which spurred other …

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30y treasury yield hits 5%; Mortgage rates just hit 8%

Student loan payments start again this month, and mortgage rates just hit 8%. My company is usually a little high, even Rocket Mortgage is showing 7.846% with 2.25 points. Not fear mongering, but its gonna be a “winter of death”. Biden got it right, but was talking about the market, not the COVID. h/t Mediocre-Bits

Young people are dying at unprecedented rates.

#2 – Dowd’s opening slide illustrated adjusted cardiovascular death rates for people aged 15 to 44 in England and Wales. From 2010 to 2019, cardiovascular deaths in this age cohort declined in England and Wales, dropping 20% from 10 to 8 deaths per 100,000. pic.twitter.com/VpqWnmkVoO — The Vigilant Fox 🦊 (@VigilantFox) September 30, 2023 #4 …

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Interest rates are rising… and rising fast…

by John-Wetter-2310 To break it down: • Since May 2021, the average 30-year mortgage has tripled, going from 2.6% to 7.8% in just over two years. This also marks a 23-year high. • The 10-Year Note Yield rises to 4.59%, its highest level since October 2007 – remember what else was happening around 2007-2008? Attached …

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The Perfect Storm Hits Big Banks: Tumbling Deposits, Rising Unrealized Losses, and Higher-for-Longer Interest Rates

Guest Post by Pam and Russ Martens at Wall Street on Parade.com: On March 30, 2022, two highly troubling events occurred: (1) Fed data showed that unrealized losses on available-for-sale securities at the 25 largest U.S. banks were approaching the levels they had reached during the financial crisis in 2008; and (2) the Fed simply …

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Slippin’ Into Darkness Under Bidenomics! US Pending Home Sales Nosedive -18.80% Since Last Year As Mortgage Rates Hit 20 Year Highs

by confoundedinterest17 The US housing market is slippin’ into darkness under Bidenomics. With existing home sales at their lowest since 2010 and new home sales finally hitting the wall, pending home sales were expected to decline MoM in August after an uptick in July (amid soaring mortgage rates and plunging affordability) and they did…hugely. Pending home …

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Government bonds are melting down… Bloomberg today: “Rates aren’t rising because of inflation, they’re rising because of the bond market”

This chart shows the Ten Year Yield where 40 = 4.0%. Currently at 4.65%. View post on imgur.com Bloomberg today: "Rates aren't rising because of inflation, they're rising because of the bond market" Looks like they finally woke up to the truth 👇 — Financelot (@FinanceLancelot) September 28, 2023 Rates aren't rising because of inflation… …

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Junk bond (‘high yield’) debt interest rates are breaking higher

‘Higher for longer’ tracking for much higher default rates. The free money has been taken away by the Fed. All yields are taking a dump on the party. Central planners at the FED have really done it. Onset of the Economic Avalanche Becomes Clear https://jensendavid.substack.com/p/onset-of-the-economic-avalanche-becomes h/t j_stars

10Y YIELD HITS 4.62%! Interest rates on just about everything are going to shift significantly higher. Percentage of credit card and auto loan balances transitioning to serious delinquency have surpassed pre-pandemic levels.

The 10-year note yield is skyrocketing and now at 4.63%, its highest since June 2007. Since last week’s Fed meeting, the 10-year note yield is up 35 basis points. Since the last Fed rate hike in July, the 10-year note yield is up 60 basis points. Interest rates on just about… pic.twitter.com/7bsPQk30ma — The Kobeissi …

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Biden’s Mortgage Market! Purchase Demand Down -27% Since Last Year As Mortgage Rates Hit Highest Level In 20 Years

by confoundedinterest17 Wasting away again in Biden’s Mortgage Market! Looking for our lost economy. Mortgage rates moved to their highest levels in over 20 years as Treasury yields increased late last week. The 30-year fixed mortgage rate increased to 7.41 percent, the highest rate since December 2000, and the 30-year fixed jumbo mortgage rate increased …

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Baltimore city schools, despite $1.6 billion funding, reported 0 proficiency rates in math with 40% of schools, and even top 5 schools having only 11% proficient students.

Despite receiving a substantial amount of funding, Baltimore city schools experienced a disheartening outcome. “Last year, Baltimore city schools received a record $1.6 billion plus an additional $799 million in COVID funds The result? 0 students tested proficient in math in 40% of schools. 0 students. The person in charge of Baltimore schools is Dr. …

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As rates have nearly tripled on most forms of debt, bankruptcy filings are rising. Nearly $270 billion of leveraged loans carry weak credit profiles and are potentially at risk of default

“Bankruptcy filings for companies with at least $10 million in liabilities are rising sharply. Since the Fed started raising rates in March 2022, bankruptcy filings have more than doubled. Corporations, individuals, and the government all got used to historically low interest rates. As rates have nearly tripled on most forms of debt, bankruptcy filings are …

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Bidenomics In Action! US New Home Sales Crashed -8.7% MoM In August As Mortgage Rates Surge

by confoundedinterest17 Biden’s press secretary Karine Jean-Pierre said that Biden was laser focused on reducing inflation. At least he isn’t laser focused on little girls … for the moment. But he still does seem laser focused on providing Ukraine with billions of dollars. After months of soaring in the face of higher mortgage rates (and …

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California OK’s Plan to Allow Insurance Companies to Use “Climate Crisis” to Inflate Rates

To stop more insurance companies from ditching California, the state’s insurance commissioner has approved plans for firms to use “climate change” as an excuse to gin up rates. California will let insurance companies consider climate change when setting their prices, the state’s chief regulator announced Thursday, a move aimed at preventing insurers from fleeing the state …

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Tightening policies worse than officially stated, the collateral value of fixed-income assets is diminishing rapidly and we are starting to see the huge deficits of the US government are pushing interest rates even higher

The significant decline in the market value of Treasury notes, bonds, and mortgage-backed securities, which make up over 80% of the Federal Reserve’s balance sheet, could potentially reduce the Fed’s assets by about $1 trillion, surpassing the impact of their QT policy. This would essentially bring their balance sheet back to 2020 levels, indicating the …

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Divorce Rates About To Explode To Record Levels In 2024

by AC I predict that by the end of January 2024, after retail sales from holiday spending posts lethargic consumer spending, companies will begin slashing millions of jobs causing wide-spread mortgage defaults. REO and foreclosures will flood the real estate market as real estate investors rush to liquidate their inventories forcing listing prices way down, …

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Billionaire investor Bill Ackman believes that interest rates are going to continue to rise, especially long-term rates

by TonyLiberty Billionaire investor Bill Ackman believes that interest rates are going to continue to rise, especially long-term rates. He says that the world is in a different place now and that investors are underestimating the impact of factors such as the skyrocketing national debt, the flood of government bonds in the market, and the …

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Inflation rates exceeding 5% continue to affect essential goods, with higher interest rates becoming the new normal as the fight against inflation continues.

This week, the Fed made it clear that they want core inflation down to 2% and that is not changing. Meanwhile, supply-side inflation remains a major issue for the Fed. Higher rates have become the new normal. Follow us @KobeissiLetter for real time analysis as this develops. — The Kobeissi Letter (@KobeissiLetter) September 22, 2023

Pushin’ Too Hard? Mortgage Rates Jump To 23-Year Highs As Conference Board Leading Economic Indicator Declined To -7.6% YoY

by confoundedinterest17 Is The Fed pushin’ too hard on rates to fight inflation? Or not hard enough?? Between the data and the overnight momentum in overseas markets, bonds are at their weakest levels in years. Mortgage-backed securities (the bonds that dictate mortgage rates) didn’t swoon quite as much as Treasuries, but as of today, it was just enough …

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Canadian Mortgage Borrowers Extend Repayment Periods as Interest Rates Surge

The Canadian 10-year interest rate has reached a new 52-week high, driven by a recent surge in inflation. In response to this economic climate, the Royal Bank of Canada, the nation’s largest mortgage lender, has disclosed concerning data about its residential mortgages. As of July, a significant 43% of these mortgages had an extended amortization …

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Bank Deposit Rates Plunge to Record Lows While Alternatives Offer 5% Yields – $1 Trillion in Deposits Flee Banks

Interest rates on bank deposits are reaching rock bottom, with major banks offering meager rates like Wells Fargo at 0.15%, Citibank at 0.05%, Chase, Bank of America, and US Bank all hovering at a mere 0.01%. In contrast, alternatives to traditional bank deposits are offering significantly higher returns, with Certificates of Deposit (CDs) topping the …

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Economic Warning Signs Flash: Impending Housing Bubble Implosion, Soaring Credit Card Rates, and Rising Bankruptcies Threaten Wealth

The current economic landscape raises concerns about the potential for significant wealth destruction when Housing Bubble 2.0, fueled by the Federal Reserve’s policies, eventually implodes. Housing Bubble 2.0: Recent data indicates that the implosion of Housing Bubble 2.0 is gaining momentum, with U.S. housing starts falling by a substantial 11.3%. This decline underscores the vulnerability …

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Homebuilder Sentiment Goes Negative For First Time In 7 Months, Thanks To Bidenomics (Mortgage Rates UP 152% Under Biden)

by confoundedinterest17 Bidenomics, the economic gift to big donors and a boot up the backside of middle class and low wage workers, keeps on giving. Now its homebuilder sentiment falling to 45. U.S. homebuilders are feeling pessimistic about their business for the first time in seven months, thanks to stubbornly high mortgage rates. Builder confidence in …

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