Stock News Hubb
Advertisement Banner
  • Home
  • Stock Market & Insights
  • Investment
  • Contact
No Result
View All Result
  • Home
  • Stock Market & Insights
  • Investment
  • Contact
No Result
View All Result
No Result
View All Result
Home Stock Market & Insights

Mortgage Rates Continue Higher But Still Historically Low | DecisionPoint

admin by admin
February 24, 2023
in Stock Market & Insights


We watch the 30-Year Fixed Mortgage Interest Rate, because, for the most part, people buy homes based upon the maximum monthly payment they can afford. As rates rise, a fixed monthly payment will carry a smaller mortgage amount. As buying power has been shrinking, home prices have come under pressure.

This week the 30-Year Fixed Rate rose from 6.32 to 6.50. The following table shows that, since the historic low in the 30-Year Fixed Rate mortgage, the same monthly payment can only service a mortgage that is one-third smaller than in January 2021. Or the same size mortgage ($500,000) will require a payment that is 56.8% higher.

This chart shows that rates are back to about where they were at the start of the Financial Crisis.

I hear a lot of gnashing of teeth about high interest rates, but when we bought our first home in 1964, the interest rate was 7.25%. When we bought our present home in 1972, the interest rate was 7.25%, so 6.5% seems pretty good to me.

The chart below shows the explosion of rates in the 1970s and 1980s. I don’t know how today’s inflation compares to that period, but it does demonstrate how bad things can get if inflation is not tamed.

CONCLUSION: Current interest rates are, in my opinion, somewhat normal with the exception of the inversion. I hear fantasies about when the Fed can start to cut, but cutting rates could just send us back to where the current inflation troubles began.


Watch the latest episode of DecisionPoint on StockCharts TV’s YouTube channel here!



Technical Analysis is a windsock, not a crystal ball. –Carl Swenlin


(c) Copyright 2023 DecisionPoint.com


Helpful DecisionPoint Links:

DecisionPoint Alert Chart List

DecisionPoint Golden Cross/Silver Cross Index Chart List

DecisionPoint Sector Chart List

DecisionPoint Chart Gallery

Trend Models

Price Momentum Oscillator (PMO)

On Balance Volume

Swenlin Trading Oscillators (STO-B and STO-V)

ITBM and ITVM

SCTR Ranking

Bear Market Rules


DecisionPoint is not a registered investment advisor. Investment and trading decisions are solely your responsibility. DecisionPoint newsletters, blogs or website materials should NOT be interpreted as a recommendation or solicitation to buy or sell any security or to take any specific action.

Carl Swenlin

About the author:
Carl Swenlin is a veteran technical analyst who has been actively engaged in market analysis since 1981. A pioneer in the creation of online technical resources, he was president and founder of DecisionPoint.com, one of the premier market timing and technical analysis websites on the web. DecisionPoint specializes in stock market indicators and charting. Since DecisionPoint merged with StockCharts.com in 2013, Carl has served a consulting technical analyst and blog contributor.
Learn More

Subscribe to DecisionPoint to be notified whenever a new post is added to this blog!



Source link

Tags: bitcoinBondschartscrude oildeath crossdecisionpointdollarfinancial chartsgoldgold minersgolden crossitbmitvmseasonalitysharpchartssilver crossstoswenlintechnical analysistltUtilitiesyield curveyields
Previous Post

‘I feel very hurt’: My late wife’s parents cut me out of their will — and reduced my daughter’s inheritance. We’re being punished after I remarried. What do we do?

Next Post

Beyond Meat, Sweetgreen, Adobe, Block and more

Next Post

Beyond Meat, Sweetgreen, Adobe, Block and more

Recommended

Nine Energy Service: Haynesville Exposure Could Be An Issue (NYSE:NINE)

2 weeks ago

The Dry January question: Would you pay $17 for a cocktail without alcohol?

3 months ago

© 2022 Stock News Hubb All rights reserved.

Use of these names, logos, and brands does not imply endorsement unless specified. By using this site, you agree to the Privacy Policy and Terms & Conditions.

Navigate Site

  • Home
  • Stock Market & Insights
  • Investment
  • Contact

Newsletter Sign Up.

No Result
View All Result
  • Home
  • Stock Market & Insights
  • Investment
  • Contact

© 2022 Stock News Hubb All rights reserved.