Rates

[Fernando]

Rates climbed a lot since Covid. During Covid I was getting measly savings rate.
Eventually when rates go down, we will have a refi boom.

 

[ZZGAMAZZ]

Rates climbed a lot since Covid. During Covid I was getting measly savings rate.
Eventually when rates go down, we will have a refi boom.

...as Markets rally worldwide based upon the reemergence of the Feekless Forecaster Fernando...

 

[Joe Flacco]

Four consecutive weeks out of the wedge.

 

[Joe Flacco]

The funny thing about the level of the rates is that there is so much focus on it's impact on demand. We know what happens when rates move higher into a new range, and it is the lock-in effect.

These are some things we might see if mortgage rates are up towards 8% next year based on observations from 2022.

1) Significant decline in existing home inventory, at least for single-family homes, and possibly even for condos.
2) Fewer buyers due to fewer number of move up buyers (sellers).
3) Increased demand for exurb new construction.

This is probably going to be the driving force in residential real estate for decades.

 

[Joe Flacco]

If you are looking for a trade for the next 12-24 months, you could do worse than ITB.