Bond markets were already giving up a portion of the previous week’s big gains before a strong NFP Jobs Report sent the benchmark 10-year Treasury Bond firmly above 300 basis points, ending the week near 3.08%.
A strong labor market gives the Fed the all-clear for additional rate hikes, but with labor participation falling, and wages slowly creeping higher, the tight labor market could continue to keep inflation hot even while the economy shows signs of cooling.
This could mean the Fed will need to remain aggressive even after certain market sectors, such as housing, start to slide.
The data clearly shows we are in a housing bubble even bigger than in 2006. Will Fed rate hikes be what finally pops this epic bubble, or has it already popped? Tune in to find out.
CONNECT WITH JON
To request a personalized mortgage consultation from Jon contact him through his website at http://JKUTS.com
You can also follow Jon on twitter at https://twitter.com/JonKutsmeda
or on Instagram at https://www.instagram.com/JonKutsmeda
and on all other social media via his handle @JonKutsmeda.
For more Mortgage Guru videos and other video content from Jon, please subscribe to his YouTube channel at https://youtube.com/user/JonKutsmeda
Welcome to the MORTGAGE GURU PODCAST, where your host Jon Kutsmeda covers the topics that matter most to homeowners and real estate investors without the industry jargon.
Each week Jon helps you to look under the hood of the housing market to make sense of the economic factors which drive home prices and mortgage rates so you can make sound financial decisions.
To subscribe to this podcast visit https://www.MortgageGuruPodcast.com