Our perspective on the stories behind the numbers, always labelled as analysis.
The S&P 500 set a record close last week while the 30-year mortgage rate climbed to 7.40%. Bond investors see a Fed that isn’t done, and housing sits on their side of the trade.
As the 10-year yield climbed past 5%, builder shares and property stocks fell harder than the market. The reason runs through incentives.
Rents are falling while mortgage costs climb. On a median home, the monthly gap has widened by about $200 in a year.
Kevin Warsh used his first Jackson Hole speech as Fed chair to open the door to higher rates. Markets took the hint.
