Something will break. It just won’t be the U.S. federal government.
Keep an eye on the potentially large number of mortgage defaults: 10% of new loans in 2022 were adjustable-rate mortgages
Keep an eye on the potentially large number of mortgage defaults. “In mid-2022, adjustable-rate mortgages made up nearly 10% of all new home loan applications, according to the Mortgage Bankers Association (MBA).”
For the average variable rate mortgage holder with a $500,000 loan and 30 years remaining on their term, another 25 basis point increase will add $1051 to monthly repayments compared to April 2022 levels.
Bank lending standards & Defaults pic.twitter.com/gNEzjG5UmD
— Win Smart, CFA (@WinfieldSmart) March 7, 2023
FED’S POWELL: THE FED IS READY TO ACCELERATE HIKES AND TAKE RATES HIGHER.
— Breaking Market News (@financialjuice) March 8, 2023
I stand by the “we are going to at least 6%”
Could be higher but not lower. pic.twitter.com/5pijKLr1yp
— ＴＨＥ ＭＡＲＫＥＴ ＤＯＧ (@TheMarketDog) March 8, 2023