> The cause of the crunch is soaring interest rates: in America prospective buyers have been watching, horrified, as the 30-year mortgage rate has hit 6.92%, over twice the level of a year ago and the highest since April 2002. ...
Bond markets tell a very different story. In the US, the yield curve is either inverted or flat from the 1Y treasury all the way out to the 30 year. Parts of the curve have been inverted on and off for a long time.
This is pointing to much lower rates ahead. Mortgage rates, too.
The global house-price slump, if it occurs, will happen not because of high mortgage rates, but in spite of falling mortgage rates. The driver will be job losses and financial turmoil.
Bond markets tell a very different story. In the US, the yield curve is either inverted or flat from the 1Y treasury all the way out to the 30 year. Parts of the curve have been inverted on and off for a long time.
This is pointing to much lower rates ahead. Mortgage rates, too.
The global house-price slump, if it occurs, will happen not because of high mortgage rates, but in spite of falling mortgage rates. The driver will be job losses and financial turmoil.