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hort on funds to pay Uncle Sam on tax day? Well, Freddie Mac said there is a housing shortage of 3.8 MILLION homes which is over and above “normal” demand. With the bump in rates, we do expect inventories to climb a little and appreciation to cool but not start falling. A 3-5% appreciation rate is still appreciation and is a far cry from a drop in prices. Mortgage bonds are trying to hold onto the floor of support they are resting on currently so we are starting this week floating, but not with high levels of confidence. A week and a half ago there were multiple articles from economists talking about the 2.5% yield on the 10 year Treasury being a peak in yield and that we would likely stall and potentially see a drop from that point. That moment was on April 5th. Now, April 18th, the 10 year yield is up to nearly 2.85% and pressing above the resistance of 2.82%. Markets are still in major flux looking for a breather.
