When I was driving home from the airport last night, I passed a large billboard for a mortgage broker which has an electronic sign showing their best interest rate. I had grown accustomed to seeing it at levels such as 2.3%, so even though I follow the markets on a daily basis, I was still shocked to see the rate approaching 7%. You can see on this chart how rapidly the 15-year rate has increased:
And, below, the 30-year rate. For most of us, we can thank our lucky stores we don’t refinance mortgages for a living, because I imagine the demand these days is approximately nil.
I was also struck by the “ten minus two” interest rate chart, showing the inversion of yields over many years. As you can see, rates are more severely inverted now than they have been in nearly half a century. Let’s just say anyone doesn’t think a massive recession is on the way is smoking dope.
As for the trading day, good God in heaven, what a bore. I’m glad to be home, but Jesus, this market sucks again. I want my vicious bear market back, God damn it.
