Things are looking up for the mortgage industry, but cracks appear in credit
weeklytearsheet.substack.com
The past couple of weeks have seen a bunch of ostensibly bad news for the bond market fail to move the march towards lower rates. It is somewhat perplexing to think that the Fed would start easing aggressively after executing one of the most drastic tightening policies in history. The 525 basis points in rate hikes is close to what Paul Volcker did in the early 1980s to vanquish 1970s inflation. Jerome Powell has stressed that the biggest mistake the Fed could make is to repeat the errors of the 1970s - tightening and then easing too quickly. Despite the data and the Fed-speak markets are pricing in a pretty aggressive easing cycle for 2024.
Things are looking up for the mortgage industry, but cracks appear in credit
Things are looking up for the mortgage…
Things are looking up for the mortgage industry, but cracks appear in credit
The past couple of weeks have seen a bunch of ostensibly bad news for the bond market fail to move the march towards lower rates. It is somewhat perplexing to think that the Fed would start easing aggressively after executing one of the most drastic tightening policies in history. The 525 basis points in rate hikes is close to what Paul Volcker did in the early 1980s to vanquish 1970s inflation. Jerome Powell has stressed that the biggest mistake the Fed could make is to repeat the errors of the 1970s - tightening and then easing too quickly. Despite the data and the Fed-speak markets are pricing in a pretty aggressive easing cycle for 2024.