by ObiWanCanownme
Something will break. It just won’t be the U.S. federal government.
Fed Chair Powell says interest rates are ‘likely to be higher’ than previously anticipated
Keep an eye on the potentially large number of mortgage defaults: 10% of new loans in 2022 were adjustable-rate mortgages
Keep an eye on the potentially large number of mortgage defaults. “In mid-2022, adjustable-rate mortgages made up nearly 10% of all new home loan applications, according to the Mortgage Bankers Association (MBA).”
For the average variable rate mortgage holder with a $500,000 loan and 30 years remaining on their term, another 25 basis point increase will add $1051 to monthly repayments compared to April 2022 levels.
Links:
https://themortgagereports.com/93472/adjustable-rate-mortgage-trends-2022
https://au.news.yahoo.com/mortgage-holders-brace-more-interest-010657251.html
Bank lending standards & Defaults pic.twitter.com/gNEzjG5UmD
— Win Smart, CFA (@WinfieldSmart) March 7, 2023
FED'S POWELL: THE FED IS READY TO ACCELERATE HIKES AND TAKE RATES HIGHER.
— Breaking Market News (@financialjuice) March 8, 2023
I stand by the "we are going to at least 6%"
Could be higher but not lower. pic.twitter.com/5pijKLr1yp— ＴＨＥ ＭＡＲＫＥＴ ＤＯＧ (@TheMarketDog) March 8, 2023