If you believed in the 2020 recovery on April 7, 2020. Then this was the best buying opportunity we will ever get in history. πΊπΈπͺπ½ππ₯
Those who followed me last year. The key was that the mother bond market in her own beautiful way was saying this will be fine. The AB model needed the 10-year yield to get to 1% before the years out and then create the range of 1.33%-1.60% in 2021
1. The price growth in 2013 was not warranted at all; we simply didn't have the right demographics for housing sales to grow that much, but the market itself cooled pricing down as rates went over 4%, the rate of growth pricing fell.
2. That 1.60% -3% move in the 10-year yield created a noticeable softening in demand, and in 2014, purchase application data trended negative on average 20% year over year. It created a solid bottom for us to work from.
No credit speculation, no exotic loan debt structure, no booming mortgage demand, it's not a bubble folks, it's just Americans wanting somewhere to live housingwire.com/articles/this-β¦
Pricing out a generation of home buyers thesis has been used since 1996 a lot, and home sales rarely go below 4,000,000.
However, even just over 4%, higher rates will cool down the markets just like they did in the past. The same thing happened in 2013/2014 & 2018/2019. Healthy!
The days of saying the Fed needs to aggressively hike rates to create a buying oppurnutiy for stocks from investors who are mostly long is coming to an end. President Trump showed us all the true colors of a lot of conservatives ππ Feel the Market, Baby!
Conservatives saying, look, there is no inflation was hilarious. Why are you hiking? Because Trump was President was classic Fintwit. Just be mindful of this.