Pushin’ Too Hard? Mortgage Rates Jump To 23-Year Highs As Conference Board Leading Economic Indicator Declined To -7.6% YoY – Confounded Interest – Anthony B. Sanders

Is The Fed pushin’ too hard on rates to fight inflation? Or not hard enough??

Between the data and the overnight momentum in overseas markets, bonds are at their weakest levels in years. Mortgage-backed securities (the bonds that dictate mortgage rates) didn’t swoon quite as much as Treasuries, but as of today, it was just enough to push the average mortgage lender almost perfectly back in line with the highest 30yr fixed rate of the past 23 years. [30 year fixed 7.47%]

Conference Board Leading Economic Indicator declined -0.4%MoM in August, bringing the year-over-year change to -7.6%.

The Fed can’t seem to make inflation go away, despite what Janet Yellen says. The reason? While The Fed’s target rate has risen rapidly over the past year and a half, The Fed’s Balance Sheet is slowwwwwllyyyyyyyyyyyyyy unwinding.

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