Mortgage rates are continuing to surge higher. This morning, the UST 10-year yield briefly shot above 5%, a level unseen since 2007. 

On The Call @ Hedgeye, Financials analyst Josh Steiner explained how this combination of factors are dashing consumers' hopes of buying a home. 

“There’s an embedded expectation among consumers and investors that, at some point, we’ll get back to a low-rate environment and mortgages will go back down to 3%,” Steiner says.

“If you understand this framework, that’s going to create a different environment than we’ve been in. As rates keep rising, that will be reflected in mortgage rates and keep pushing them higher on top of what’s happening in the Treasury market. You get a double whammy for sure.” 

Watch the full clip above for a comprehensive breakdown of this topic. 

 Steiner: Skyrocketing Rates a “Double Whammy” For Consumers  - Call Banner