Interest Rates
The stock market is always an interesting phenomena to watch.
After a period of greeting all bad news as good, the market has now suddenly decided that there is an inflation problem. It might be because the rest of the world is raising interest rates because their governments actually use good data to make decisions.
The ten year bond is now, finally, recognizing that rates are likely to have to go higher to fight inflation having just crossed the 5% level.
Why does this matter? Because higher interest rates are going to be like stepping on the throat of a housing market that is laying in the gutter. This will put further pressure on consumers who have been fueling this recent "boom" by borrowing from the home ATM.
It's looking like the summer and fall are going to be interesting for more reasons than Iraq.
3 comments:
I suspect it's going to be a buyer's market when all those foreclosed homes are on the block.
I don't think those lower prices are in the future. They're here now in a big way. If you have the dough, it's a good time to buy.
Makes me wonder if my house is even worth what I still owe on it.
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