Rebel Capitalist News Mortgage Rates Are Skyrocketing, Will Trump Buy Greenland? Is Dollar Doomed?
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Dec 27, 2024 Rising mortgage rates are impacting the housing market and the economy, with inflation and Federal Reserve policies playing critical roles. A proposal regarding U.S. control over the Panama Canal sparks debate over national security and libertarian views on territory. The significance of acquiring Greenland is examined, emphasizing its military and resource potential. The podcast also explores the possible integration of Canada into the U.S., alongside discussions of dollar stability and currency liquidity's effects on global asset prices.
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Mortgage Rate Impact
- Mortgage rates have been rising since the Fed started cutting rates, contradicting expectations.
- This rise impacts the housing market and potentially other assets as homeowners may sell to offset losses.
Mortgage Rate Spread
- The spread between 10-year treasury and 30-year mortgage rates has increased due to quantitative tightening (QT).
- QT and growth/inflation expectations impact mortgage rates, even if the 10-year treasury yield decreases.
Housing Market Downturn
- When the real estate market declines, it affects submarkets first, like Phoenix and Austin during the current downturn.
- This mirrors 2007-2008, where initial declines in some markets preceded broader declines across the entire market.