Day after day we are told, just wait for rates to rise ("which they
'have' to because economic growth is so strong") and stocks will take
off into the next leg of exuberance... why else would the Fed end QE and
start more hawkish discussions? (aside from the fact they truly fear
broken repo, exuberant markets, and lethargic politicians). Be careful
what you wish for...
Mortgage rates rose last week, back to the
same level they have been at for 3-months, and refinancing activity
(adjusted for holidays) collapsed to its lowest since 2008... and home purchase activity tumble back towards 20-year lows.
Rates up... mortgage activity collapses...
to its worst since 2008...
Furthermore, despite record highs in US equity prices - which must
mean the economy and confidence is soaring, right? Home purchase
activity plunged back to near 20-year lows...
Does this in any way look like a recovering housing market?
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