Thursday, June 11, 2009

Box of Houses

Only shadows ahead barely clearing the roof
Get to know the feeling of liberation and relief

--Crowded House

A couple months back I locked in a 15 yr fixed mortgage at 4.625%. Today's 15 yr fixed quote on bankrate.com is nearly 5.4%. Nearly 80 bips higher and at 6 month highs.

Certainly a headwind for any recovery in the housing sector.

After some tough auctions this wk, yields on the 10 yr are just south of 4%.


Looks like the Fed needs to hoover up more bonds. Ooops, the soft USD may be sensing such.

Once again, the set up demonstrates a key problem with trying to print your way out of a debt problem.

1 comment:

OSR said...

I feel some Fed/Treasury monkey business in the MBS markets coming on.