The brief excerpt below is from an article published on Forbes.
The mainstream financial media narrative on U.S. housing is clear: rates going up is bad for housing.
In the chart below, we highlight that there is certainly merit to the idea that rates going up is negative for housing equities. It shows the 10-year yield (a proxy for mortgage interest rates) versus builder relative performance. As the chart highlights, there is a tight inverse correlation between rates and homebuilders.
But while rate increases matter, it is the pace of rate increases that are ultimately the primary factor...
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