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IPFS News Link • Housing

30-Year Mortgage Rates Approaching 7% Again, Housing Will Suffer

• by Mike Shedlock

30-Year Mortgage Rates courtesy of Mortgage News Daily

Mortgage News Daily reports Mortgage Rates Now at 2 Month Highs by Matthey Graham.

It may not be a death by a thousand cuts, but mortgage rates are suffering a bit of blood loss from roughly 5 cuts. Specifically, the past 5 days have seen consecutive moves to higher levels. The whole affair has been fairly steady relative to the types of volatile swings that have been all too common for most of the past year and a half.

The average lender is now at their highest levels since early March, just before the Silicon Valley Bank failure kicked off a flight to safety that helped bonds/rates improve substantially.

Despite the unfriendly movement, we're not necessarily facing a persistent threat. Unfortunately, it's just as fair to say we're not expecting any persistent drop in rates for any particular reason either. That juxtaposition speaks to the rate market's recent indecision and the fact that we continue waiting on an unequivocal case to be made for or against inflation returning to lower targets.

Technical Pattern

The blue triangle-shaped pattern I outlined on the MND chart is either a symmetric continuation pattern (same slope) or a rising wedge, differing slopes.