Wednesday, October 29, 2014

Grab the popcorn. It's gonna get messy.

Well, the Fed has stopped buying bonds. "allegedly".

This will cause interest rates to rise because people want to be compensated for the extraordinary risk that exists in buying them. You could already see a move up this morning in rates.

The funny thing is (said in the most sarcastic way) last week or the week before when rates fell well under 4%, home sales barely budged. Everyone who thought they could now refi started rushing through that door. But, that door will soon close. Then both home sales and refi's will be completely caved.

Buckle in.

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