1. 30-year mortgage rate increased to 6.36%, highest in two weeks. 2. Rising rates contradict expectations of a Federal Reserve interest-rate cut. 3. The mortgage rate hasn't dipped below 6% since February 2023. 4. Inflation concerns may impact future Fed rate cuts. 5. Adjustable-rate mortgages suggested as alternatives for affordability.
FAQ
Why Bearish?
Rising mortgage rates typically dampen housing market activity, affecting SPY. Higher borrowing costs can signal economic slowdown, similar to past Fed actions.
How important is it?
Rising mortgage rates against expected Fed cuts reflects economic uncertainty, influencing SPY.
Why Short Term?
Immediate effects on consumer sentiment and spending likely due to higher mortgage rates. Historical trends show quick market response to rising rates.