• Hedgeye Investing Summit: A Special HedgeyeTV Webcast Event

    The sharpest minds in investing discuss the most important market and economic developments and their investing implications. Watch the free replay.

Below, my colleague, Andrew Barber, put together a chart that overlays the long term chart of fixed mortgage rates with its spread to 10 year Treasury yields.

This morning the 30 year fixed mortgage rate hit a new short term high of 6.37%. As access to capital continues to tighten, these rates can go a lot higher. Historical context makes this point crystal clear.

Don’t forget that over 70% of new home loans in this country are either bought or guaranteed by US government sponsored issuers.
KM