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While everything you said is true: 1) <10% of the US mortgage market is ARMs. 2) Treasury rates are still super low, even with high CPI inflation. It's not at
by rory 5y ago
While everything you said is true:
1) <10% of the US mortgage market is ARMs.
2) Treasury rates are still super low, even with high CPI inflation. It's not at all obvious interest rates will go up by much even with sustained 5-10% inflation, since society's ratio of capital to productivity is at an unprecedented level.
- NovemberWhiskey 5y agoAt this point, most of those who perform augury on the intentions of the Fed are predicting five to six 25bp interest rate increases before the end of 2023.
- rory 5y agoYes, but fixed mortgage rates aren't affected much by the fed funds rate, compared to treasury yields.