FYI: The 30-year fixed mortgage rate is inching ever closer to 5%, up from 3.35% in May of 2013. This is causing people to worry about how this will impact the housing market.
The 10-year treasury yield is above 3% been after bottoming out under 1.4% in the summer of 2016. This is causing people to simultaneously worry about both the stock and bond markets.
The Fed Funds Rate currently stands at 2.25% after being on the floor at close to 0% from 2009 through the end of 2015. This is causing people to worry the Fed is going to snuff out the economic recovery by raising rates too far, too fast.
The inflation rate over the past 12 months was 2.3%. That’s up from a minor bout of deflation experienced in the financial crisis. This is causing people to worry about the effects of inflation on the economy and financial markets.
Each of these rates is elevated from the lows of this cycle but it’s fascinating to compare them to levels seen historically and the not-too-distant past.
Regards,
Ted
https://awealthofcommonsense.com/2018/10/the-relative-anchor-in-rates/
