Interest Rates Spike: MBS and Housing Killed – Thanks Fed – 8 posts


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MBS Clobbered and Treasury Yields Soar Following Purportedly Good Job Numbers – Mike Shedlock – … Michael Becker at WCS Funding Group says today is one of the worst selloffs in mortgage backed securities (MBS) that he has ever seen. For example a 30-year FHA loan that Becker placed on Tuesday at 4 1/8% would be 4 3/4% today. The Fed is probably having a conniption-fit over these reactions. Expect the Fed to come out in full-force again, with repeated attempts to talk rates down. … – MISH’S Global Economic Trend Analysis    

versus this …
(quotes several economists) Bernanke Seen Sticking to QE Tapering Plan After Jobs Report (2)  – By Joshua Zumbrun – Bloomberg 
Implied rate hike date moves to October of 2014Sober Look Blog – The Fed Funds futures curve steepened again on Friday, bringing forward the implied date of the first rate hike by the Fed. 
earlier June 10 post says: … But the Fed can’t start raising rates before the end of the unconventional monetary policy measures (can’t be raising rates while buying securities at the same time). That means if the Fed begins to “taper” off bond buying in the next few months, it will have about one and a half years to go from $85 bn of securities purchases per month to zero. … 
(3 observations) First signs of rate-driven weakness in the housing sector – Today Citi and some other banks quoted the 30-year conforming mortgage rate at 4.625%. Others are quoting the rate even higher (see national averages below). – Sober Look Blog  
(4 summaries) 7-5 Rates “Carnage” Summary…Housing & Mortgage Significantly Impacted – by MARK HANSON BLOG – …  But today, the back of the market was broken, as “real rates” used by the majority of buyers / refinancers — not the “bait & switchers” quoted in your local rag, by the GSE’s, or by organizations that don’t realize people don’t take out mortgages that cost 3 points — rates shot over 5% today with conviction…3% 10s and 5.75% mortgage rates look to be in the bag. But even at today’s levels “the surge” was a significant “credit event” for housing and mortgage.   It’s going to be an ugly Q3/Q4 for these sectors. …
Navigating the shift to a stingier Fed – By Tom Petruno – What investors need to know as the Fed ponders trimming its stimulus plan – LA Times

Life After Easy Money – By Rana Foroohar  – The Fed is finally making its move. Get ready for the biggest market shift in five


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