Posts Tagged ‘mortgage rates’
There’s a Lot Riding on the Current Regime Change
Regime changes are hard. Take, for instance, the current regime change from disinflation and falling rates to inflation and rising rates. As the previous regime lasted for over 40 years, there is a generation of investors who know nothing other than that experience. What makes regime changes difficult is that it requires investors to “unlearn”…
Read MoreThe Trouble with Bonds
Whatever the Federal Reserve’s current and future decisions are regarding interest rates, it’s an important reminder that the Fed only controls the direction of short-term interest rates. The market controls the longer end of the curve. U.S. Treasury bond yields are a function of three factors: term premium, inflation, and economic growth expectations. Term premium,…
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