All of the problems of the first real estate bubble are back, and now rates are up for the 4th week in a row. Here’s an update on the US housing market…
Josh Sigurdson talks with author and economic analyst John Sneisen about the continued propping up of US housing bubbles across the board as mortgage rates hit a four month high.
We have seen the return of the collateralized debt obligations of the past, not to mention credit default swaps, mortgage backed securities, reverse mortgages, subprime lending, and we are seeing it reach its inevitable peak as we saw in 2007 and 2008.
The 30 year fixed rate mortgage was up 5 basis points in the week of September 20th to 4.65%. That’s the fourth weekly gain.
The 15 year fixed rate mortgage averaged 4.11% which was also up 5 basis points.
The 5 year treasury indexed hybrid adjustable rate mortgage averaged 3.92% down from 3.93%.
These rates appear to be trending along the same line as the treasury yield which we’ve seen in danger of reverting in the past few months. Team this all with current market conditions and this is quite concerning.
We must remember in the 1980s, rates skyrocketed far more, but we didn’t see such a vast combination of debt and money being thrown into everything. A multi-quadrillion dollar derivatives bubble. A massive pension bubble set to hit 400 trillion dollars by the year 2050. A massive auto bubble. A massive stock market bubble held up by speculation and investor confidence without true fundamental value. Tie this together with the out of control central planning of the monetary system and you’ve got one of the biggest crashes the world has ever seen on the way, continuously propped up after 2008. A continuation of what we got a glimpse at previously.
The crash is inevitable, but the time of the crash is entirely unpredictable. We cannot put a date on it, but we know individuals must prepare themselves and do what they can to protect their purchasing power.
Decentralize your lives and be independent free individuals.