Is The Value Of Your Home Going To Fall As Rates Rise? 6
To conclude our discussion on mortgage rates, house prices & epiphenomena, let’s consider the Fed’s role, or lack of one, in the housing market.
Is The Value Of Your Home Going To Fall As Rates Rise? 5
The 1st Gulf War and its effect on oil prices is a good parallel to mistaking mortgage rates for house prices. While connected, they aren’t the same thing!
Is The Value Of Your Home Going To Fall As Rates Rise? 4
Real estate is its own market, subject to its own forces of supply and demand. Thinking that interest rates are the only factor driving prices is too reductive!
Is The Value Of Your Home Going To Fall As Rates Rise? 3
High mortgage rates don’t necessarily lead to lower house prices because high rates themselves are indicative of a bull market in housing! Here’s why.
Is The Value Of Your Home Going To Fall As Rates Rise? 2
A quick check of the correlation between home prices and 30y mortgage rates shows that it constantly changes. Simply put, homes aren’t 30y bonds. Here’s why.
Is The Value Of Your Home Going To Fall As Rates Rise? 1
30y mortgage rates in the US have risen sharply to ~4%, giving rise to concern that home values will fall. Are these claims and concerns valid?
Evergrande Update 4: On The Cusp Of A Banking Crisis
The Evergrande contagion has begun to affect China’s largest developer. This could mark the point at which the contagion embarks on its next phase.
A New Perspective On China’s FX RRR Hike 2
USD illiquidity is the real threat to the Chinese (and global) economy, which makes it prudent to think of China hiking its FX RRR from this perspective.
A New Perspective On China’s FX RRR Hike 1
Last week’s plunge in USDCNY was ostensibly due to a hike in the RRR for domestic banks’ FX deposits; done to halt CNY’s strength. Is this too simplistic?
Evergrande Update 3: Default Is Here, Focus Turns To CNY
Evergrande has finally formally defaulted. While not a surprise to markets, it did cause a plunge in the CNY; which isn’t a good sign for the rest of the world.
