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The Wall Street Journal reports that mortgage rates have hit a 10-year high.
30-year fixed rates…
15-year fixed rates…
5/1 adjustable rate mortgage loans (ARM)...
All of them are at a 10-year high.
In fact, the 0.96% rate increase this past March is the largest 5-week spike we’ve seen since May 1987.
And we all know what happened in 1987.
Black Monday happened, the market suddenly crashed, and worldwide losses totaled $1.71 trillion.
That’s because when mortgage rates jump up this fast it’s always a recipe for disaster.
Because sooner or later, there has to be a pullback or recession.
People who are used to low interest rates will stop buying houses, and this will cause demand to drop.
Think about it…
Someone who bought a house with a 2% rate… will probably not buy another house with a 5% rate.
And eventually, mortgage rates will hit a number that’s so high - possibly 10% to 12% - that people will just decide not to buy a house at all.
All signs suggest we will see some sort of pullback in the near future.
That could be 3 months from now… or as far as 18 months from now.
That’s the thing with these sort of macroeconomic forces, it takes time before we see the consequences.
That’s why at Stock Navigators, we’re always paying attention to the overall market.
Everything is connected, and we track the housing market using technical analysis.
The type of technical analysis we teach is called Echo Mapping.
It works for all assets, real estate… crypto… stocks… you name it, it works for it.
This is how we’re able to prepare ourselves for any curveballs the market throws at us.
And we’ve recorded a special podcast, How to Use Echo Mapping to Spot Winning Investments Before They Take Off, to show you exactly what Echo Mapping is and how you can start using it today.
Stock Navigators has one mission - to help people improve their lives via trading. And it's all made possibly by our team of stay-at-home day traders who provide the most up-to-date analysis every single day. With over twenty years of combined trading experience, Stock Navigators helps you stay on top of the market.
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