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Mortgage Rates and Housing Market Dynamics
This chapter analyzes current mortgage rate trends and their correlation with the 10-year yield and historical price spreads, emphasizing the lack of demand for mortgage-backed securities. It explores how rising interest rates and low inventory impact home prices, alongside the challenges faced by younger generations in achieving homeownership. The discussion includes potential economic repercussions, such as a recession, and the varying dynamics in housing markets across different regions.