30-Year Treasury Yield Hits 5.70%, Highest Since 2002
The 30-year Treasury yield reached 5.70% on Monday, its highest since 2002, while the 10-year yield neared 5.32%, pressuring gold and equities.
HousingWire analyst Logan Mohtashami discusses surging mortgage rates, rising bond yields, and the competition between Bitcoin and real estate.
Home loan costs have reached a nearly three-year peak, causing buyers to step back. Logan Mohtashami, a senior analyst at HousingWire, discusses the reasons behind the continuing increase in the 10-year Treasury yield following the breakdown of talks with Iran, as well as the Fed's more aggressive stance. He also describes how mortgage spreads are preventing 30-year rates from exceeding 8%.
Chapters:
00:00 30-year mortgage rates hit 7.28%, their highest in nearly three years.
00:52 Discussion of Iran negotiations, the Federal Reserve, and the ongoing rise in the 10-year yield.
01:58 Explanation of mortgage spreads and why rates have not climbed past 8.6%.
03:28 Conditions required for significant home price reductions.
04:43 Homebuilders, their profit margins, and the practice of buying down mortgage rates.
06:17 Reasons the current housing market differs from 2008.
08:13 Bitcoin and real estate as competing assets for monetary premium.
09:52 Using Bitcoin as collateral for a home down payment.
10:52 Grant Cardone’s approach combining Bitcoin and real estate.
13:15 Forecast for mortgage rates, home prices, and affordability in 2027.
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The 30-year Treasury yield reached 5.70% on Monday, its highest since 2002, while the 10-year yield neared 5.32%, pressuring gold and equities.
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