30-Year Fixed Rate Mortgage at Record Lows 4.44%, Falling Wedge Reversal Pattern (chart)

As of 8/12, the Freddie Mac 30-Year Fixed Rate Mortgage stood at 4.44%, a record low. I threw up a chart from the St. Louis Fed which starts at 1975. There will soon be a crazy multi-decade falling wedge reversal. It will be hard to time, but watch out for the bond vigilantes when rates start breaking out and Treasury volatility moves. Hopefully as a result of reflationary growth instead of stagflation. These rates are currently being fueled by the Fed and appetite for Treasuries by banks, savings et al. Also 78% of all "loan applications nationwide", according to the Mortgage Bankers Association, are refinancings (Washington Post).

MORTGAGE30US - 30-Year Fixed Rate Mortgage US Average (Freddie Mac)


Comments

  1. US Government can handle this. Even
    mortgage business is failing. It doesn’t mean it will not happen again.



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  2. What you're left with is therefore default and I think it's a fair bet that the United States will default, at least on the unfunded liabilities of social security and Medicare at some point in the foreseeable future.
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