Hello, everyone. Welcome back to the Mortgage Rundown. In today's episode, since we're getting so close to the holidays, I thought I would do a year in review of so far in 2022.
The 10-year Treasury started the year at 1.5%. But thanks to an overheated economy, the Federal Reserve is pushing interest rates much higher. The 10-year Treasury hovers around 4% by the end of the year.
Speaking of the Federal Reserve, they are on track to raise interest rates at the fastest pace in over 30 years. It will be very interesting to see how much they can combat record inflation with higher rates and if they can bring higher interest rates back down to a more normal level next year.
We see mortgage rates this year jump from around 3% in January, all the way up near 7% by the end of September.
It's truly been a year to remember, and hopefully higher rates don't impact the housing market negatively. Hopefully, we will see inflation come down materially very soon, or the FOMC will be forced to be very less accommodative. And that means higher rates and a higher risk of a recession.
That's it everyone from the Capital Markets Desk this week. Thank you all for watching. Have a great day and a happy holiday!