Sept 10, 2013 | ECB | Michael Synder
If you have a job that involves building homes, buying homes, selling homes or that is in any way related to the mortgage industry, you might want to start searching for alternate employment. Seriously. Interest rates are starting to rise dramatically, and mortgage lenders such as Bank of America, Wells Fargo and JPMorgan Chase are all cutting thousands of mortgage-related jobs. Last week, mortgage refinance activity plunged to the lowest level that we have seen since June 2009 and total mortgage activity dropped to the lowest level since October 2008. Unfortunately, this is only the beginning. Mortgage rates closely mirror the yield on 10 year U.S. Treasuries, the the yield on 10 year U.S. Treasuries has nearly doubled since early May. But it is still only sitting at about 3 percent right now. As I have written about previously, it has a ton of room to go up before it hits "normal" historical levels, and so do mortgage rates. As I noted the other day, some analysts believe that the yield on 10 year U.S. Treasuries is going to hit 7 percent eventually. If that happens, mortgage rates will be more than double what they are today. And we have already seen the average rate on a 30 year fixed rate mortgage go from 3.35 percent in May to 4.57 percent last week. If interest rates continue to rise we could be heading for a "housing Armageddon" that will make the last housing crash look like a Sunday picnic.
|Comment: The banks Michael is talking about have never failed as they should have. This is still going to occur, as they are counterfeiting criminal operations. This means the entire system will fail before they are gone, and then they will probably do everything in their power to keep us believing the dollar is real, even giving out free money. But in the end, the ship will sink, and there is nothing that is going to stop it.The PTB already know this and are making plans to ensure you are still believing you need them, when this will reach a climax of people realizing this was a horrible lie.|