Mid Week Reads: July 21, 2021
A Second Student Loan Servicer Quits, Adding To Potential Chaos For Borrowers
The student loan servicer scene is only getting messier. Who will be handling your loans when they go back into repayment?
Home prices in the US hit another record, but sales are slowing down
The housing frenzy might be starting to slow down, while prices are still high, not everyone is in the market to buy or sell. This might be because we have already seen such high volumes of sales this year already.
Volatile interest rates cause mortgage demand to drop
Mortgage rates are tied to interest rates (see chart below) and the move together, so when there is fluctuation in interest rates, there is likely going to be fluctuation on the rate new mortgages are issued at.
Will’s Chart of the Week:
The chart is embedded, so you can use your mouse-wheel or scroller to adjust the timeframe of the chart.
Chart is from our friends at Koyfin.com. You can actually create a login and make your own charts if you want to go experiment for yourself.
What’s in the chart?
On Top: 30 and 15 year mortgage rates compared to the rate on the US Treasury 10 year.
How to read it: It’s interest rates, not returns, so when the line goes down, that means mortgages issued by banks and 10 year US Treasury Bonds issued or traded were done so at that prevailing interest rate.
On the Bottom: The correlation between the US 10 year Treasury Bond interest rate and the 30 Mortgage interest rate.
How to read it: anything above 0.00 means the two items are correlated, meaning them move together in both direction and magnitude to a certain extent. But correlations change over time as markets and the world change.