BOND SELL OFF > 10 YEAR #TREASURY YIELD ^ > MORTGAGE RATES ^ > #STOCKMARKET ⤵️ > HOUSING MARKET ⤵️ > CREDIT/LIQUIDITY 💨 > #RECESSION pic.twitter.com/wOnpOA2A8O
— OW (@OccupyWisdom) October 5, 2018
Debt market > stock market
With 3 months to go, US Bonds (Barclays Agg) are on pace for their worst year in history… pic.twitter.com/3wKVT591ux
— Charlie Bilello (@charliebilello) October 5, 2018
From the market bottom in 2009 to now, the capitalization of companies listed in the S&P 500 index grew by more than $18 trillion. But three of every 10 dollars in gain came from the 73 tech companies in the index. t.co/vYwcrcD37q pic.twitter.com/ugGXFvj1yD
— Jesse Felder (@jessefelder) October 5, 2018
2008 crisis: “ I was caused by too much leverage in the system”
2018: “Hold my beer” pic.twitter.com/KcoOJrpm8y
— OW (@OccupyWisdom) September 29, 2018
The U.S. government shelled out a record $523 billion on interest payments in the past fiscal year. @TheTerminal pic.twitter.com/xeTV2U8fIS
— Lisa Abramowicz (@lisaabramowicz1) October 5, 2018
It’s begun
An interesting chart. pic.twitter.com/99WrJ8MLOU
— Preston Pysh (@PrestonPysh) October 5, 2018
The valuation of the MSCI Emerging Markets index, based on price as a multiple of projected earnings, has fallen to the lowest level since 2008 relative to the S&P 500 index. @SriniSivabalan @TheTerminal pic.twitter.com/ib9QBeLp7V
— Lisa Abramowicz (@lisaabramowicz1) October 5, 2018
As Yields Soar, “Bond-Market Bloodbath” Will Hit Mortgage Rates at Worst Possible Time
So far this year, the 30-year-fixed has averaged 4.47%, versus 3.99% in 2017
Rates for home loans moved sideways in the most recent week, but the burgeoning bond market sell-off will likely hit mortgages in the coming weeks, setting up another test for a strained housing market.
The 30-year fixed-rate mortgage averaged 4.71% in the October 4 week, down one basis point from 4.72%, mortgage liquidity provider Freddie Mac said Thursday. That snapped a five-week stretch of gains for the benchmark product, which had recently hit its highest point since April, 2011.
The 15-year fixed-rate mortgage averaged 4.15%, also down one basis point. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 4.01%, up from 3.97%.
Those rates don’t include fees associated with obtaining mortgage loans.
Mortgage rates track the 10-year U.S. Treasury note TMUBMUSD10Y, +1.79%but with a lag. In the days covered by Freddie’s survey, bonds were whipsawed by geo-political events. The announcement of a trade deal between the U.S., Canada and Mexico buoyed stocks and diminished interest in bonds on Monday. But by Tuesday, concerns about Italy’s fiscal problems rattled markets, sending investors back into the perceived safety of bonds.
Bond yields move in the opposite direction of prices.