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"It is really not the right time to experiment with fiscal policy," AXA chief economist Gilles Moec said about the UK's moves, assessing that Monday's U-turn may have appeased "the bond vigilantes for now". The term, bond vigilantes, refers to debt investors imposing fiscal discipline on profligate governments by forcing their borrowing costs higher. Ed Yardeni, who coined the bond vigilantes term in the early 1980s, penned a blog post saying "They're Baaaack!" Even U.S. President Joe Biden was speaking the bond vigilante's language at the weekend, noting he wasn't the only one that thought the UK plan was a "mistake". "This is probably the biggest example in practice of the bond vigilantes activity," said Antonio Cavarero, head of investments at Generali Insurance Asset Management.

☆ The newest Nobel-winning economist lays out 2 reasons the US is 'really exposed' to a financial crisis
▼ + stars: | 2022-10-16 | by ( Ben Winck | ) www.businessinsider.com time to read: +7 min

Two trends risk slamming the US financial system, Douglas Diamond, one of the latest Nobel-winning economists, told Insider. Years of near-zero interest rates leave firms "really exposed" to surging borrowing costs, he added. Yet the coronavirus crisis and the following inflation spell have thrown the financial system into a sea of uncertainty. "With that circumstance, when you actually raise interest rates in a hurry, you're going to be really exposed. Interest rate increases also make companies' debt much pricier to service, which in turn raises the risk of bankruptcy.

☆ Premarket stocks: A 'tectonic shift' in global wealth that will take years to recover from
▼ + stars: | 2022-10-14 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Investors could be betting that the stronger-than-expected inflation report means price increases are near their peak. “The context of rising interest rates and the higher cost of living could pose a risk to household balance sheets,” reported researchers. The takeaway: Allianz calls these changes a “tectonic shift” in global wealth that will take years to recover from. Mortgage rates hit a 20-year highMortgage rates in the US rose again this week — inching even closer to 7%. Today, a homeowner buying the same-priced house with an average rate of 6.92% would pay $2,059 a month in principal and interest.

London CNN Business —UK Prime Minister Liz Truss has fired finance minister Kwasi Kwarteng and ditched a big part of her discredited economic strategy in a desperate bid to rescue her month-old premiership. “It was right, in the face of the issues we had, that I acted decisively to ensure that we had economic stability,” Truss said Friday. Kwarteng presented a “mini budget” just three weeks ago, promising tax cuts worth £45 billion ($50 billion) and increased borrowing with the hope of boosting UK economic growth. “Liz Truss’ reckless approach has crashed the economy, causing mortgages to skyrocket, and has undermined Britain’s standing on the world stage,” he said. Kwarteng had flown back from the IMF meeting in Washington, D.C., overnight for discussions with Truss.

☆ Mortgage Rates Hit 6.92%, a 20-Year High
▼ + stars: | 2022-10-13 | by ( Ben Eisen | ) www.wsj.com time to read: 1 min

U.S. mortgage rates jumped to their highest level in more than two decades. The average 30-year fixed mortgage rate hit 6.92% this week, according to a survey of lenders released Thursday by mortgage giant Freddie Mac . Many lenders are offering rates well over 7%. A year ago, the average rate was 3.05%.

☆ Inflation: Is the Fed losing the war?
▼ + stars: | 2022-10-13 | by ( Allison Morrow | ) edition.cnn.com time to read: +6 min

“This inflation report today was an unmitigated disaster,” wrote Christopher S. Rupkey, chief economist at Fwdbonds, a financial markets research company. Is the Fed losing the fight against inflation? But the effects of rate hikes can take months to be felt in the real economy. But the Fed is “losing the war” when it comes to price hikes for the services sector. Ultimately, some say the problem of pandemic-era inflation is just too complex to be fixed with the Fed’s blunt tools.

☆ The Fed is losing the war against inflation
▼ + stars: | 2022-10-13 | by ( Allison Morrow | ) edition.cnn.com time to read: +6 min

☆ Premarket stocks: How to read big bank earnings
▼ + stars: | 2022-10-13 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

Beyond disappointing headline figures, Wall Street analysts are focusing on three important factors: loan growth, capital adequacy, and the economic outlook. Loan growth: The rate at which businesses borrow money from big banks doesn’t just tell us about the health of a financial institution itself. But Wall Street estimates show that loan growth is expected to decelerate in Q4 and into next year. Growth of Individual loans will likely decline, showing that Americans are beginning to feel the pinch of rising interest rates. Capital adequacy: Expect banks to take questions about how much money they have on hand.

☆ Hot inflation report means markets face a more aggressive Fed and likely recession
▼ + stars: | 2022-10-13 | by ( Patti Domm | In | ) www.cnbc.com time to read: +3 min

Another hotter-than-expected inflation report puts pressure on the Federal Reserve to raise interest rates even more aggressively, but that also could tip the economy into a recession. Stocks declined and Treasury yields rose, after September's consumer price index showed inflation running at a 0.4% pace. In the futures market, traders bet the Fed would drive its fed funds to near 5% by next April, up from 4.65% on Wednesday. The terminal rate is the end rate where the Fed would stop its hiking for this cycle. Fed officials have been emphasizing that once they finish raising rates, they intend to hold them there to continue the fight against inflation.

☆ U.S. mortgage interest rates rise to highest level since 2006
▼ + stars: | 2022-10-12 | by ( ) www.reuters.com time to read: +2 min

Oct 12 (Reuters) - The average interest rate on the most popular U.S. home loan rose to its highest level since 2006 as the housing sector continued to bear the brunt of tightening financial conditions, data from the Mortgage Bankers Association (MBA) showed on Wednesday. Mortgage rates have more than doubled since the beginning of the year as the Federal Reserve pursues an aggressive path of interest rate hikes to bring down stubbornly high inflation. The yield on the 10-year note acts as a benchmark for mortgage rates. Homebuilding and sales have weakened significantly in recent months, with home resales posting seven straight months of declines. Register now for FREE unlimited access to Reuters.com RegisterReporting by Lindsay Dunsmuir; Editing by Bernadette BaumOur Standards: The Thomson Reuters Trust Principles.

For the rest of 2022, borrowers should expect mortgage rates to remain near their current levels. See more mortgage rates on Zillow Real Estate on ZillowMortgage calculatorUse our free mortgage calculator to see how today's interest rates will affect your monthly payments. 30-year fixed mortgage ratesThe current average 30-year fixed mortgage rate is 6.66%, according to Freddie Mac. 15-year fixed mortgage ratesThe average 15-year fixed mortgage rate is 5.9%, a slight decrease from the prior week, according to Freddie Mac data. Historically, adjustable mortgage rates tend to be lower than 30-year fixed rates.

☆ Bank of England warns risks to UK financial stability haven't gone away
▼ + stars: | 2022-10-11 | by ( Mark Thompson | ) edition.cnn.com time to read: +4 min

A slump in UK government bonds that promise to protect investors from inflation — known as index-linked gilts — was the latest source of risk, it said. “Dysfunction in this market, and the prospect of self-reinforcing ‘fire sale’ dynamics pose a material risk to UK financial stability,” it said in a statement. Starting Tuesday, the Bank of England will include index-linked gilts in its emergency £65 billion ($71.7 billion) bond-buying program announced on Sept. 28. The market meltdown began after Prime Minister Liz Truss’ government unveiled £45 billion in unfunded tax cuts on Sept. 23. And with monetary and fiscal policy now working in opposite directions, we think the broader risks around UK monetary [and] financial stability are growing,” he added.

☆ Interest rate delusion may be biggest error of all
▼ + stars: | 2022-10-06 | by ( Edward Chancellor | ) www.reuters.com time to read: +7 min

The false idea exposed by the current bear market is that interest rates would remain low indefinitely. The belief that interest rates would remain at permanently low levels could prove the most costly error of all. The lowest-ever interest rates gave us the “Everything Bubble”. Now that interest rates are rising, everything is at risk. The pension funds faced margin calls on their loans, and the bond market seized up as they scrambled to raise cash.

☆ Mortgage mayhem sparks fears of a housing market crash in Britain
▼ + stars: | 2022-10-04 | by ( Elliot Smith | ) www.cnbc.com time to read: +3 min

U.K. mortgage rates have skyrocketed since Finance Minister Kwasi Kwarteng's mini-budget on Sept. 23, prompting banks to pull mortgage products threatening a deepen an expected housing market downturn. Dan Kitwood | Getty ImagesLONDON — There are growing fears of a housing market crash in the U.K., after a swathe of tax cuts announced by the government sent interest rate expectations soaring, driving up lending rates for homebuyers. Economist Andrew Goodwin suggested that there could be more pain ahead — particularly when it comes to the housing market. A number of banks suspended mortgage deals for new customers, and many have now returned to the market with significantly higher rates. Interest rate expectationsLooking ahead, whether the fixed rates on mortgages remain elevated or begin to moderate will depend on the trajectory of interest rates expectations.

Average 30-year U.S. mortgage rates have hit 6.7%, the highest level since 2007, mortgage giant Freddie Mac reported Thursday. There remains a large dispersion in rates, Freddie Mac said, with some lenders having breached 7%, according to Mortgage News Daily, representing a 20-year high. This time last year, mortgage rates were at less than 3%. If bond yields continue to move higher, mortgage rates will, too, said Matt Graham, the founder and CEO of MBS Live mortgage data group. "We may already be looking at the ceiling levels for mortgage rates unless Treasuries manage to press significantly" higher, Graham said in an email.

☆ Australia's house prices fall, interest rates soar but analysts say there's no crash yet
▼ + stars: | 2022-09-29 | by ( Su-Lin Tan | ) www.cnbc.com time to read: +10 min

Mortgage rates have fallen to below 2% in recent years, but interest rates are rising rapidly in Australia. Home prices fallNational house prices have fallen for a fourth straight month as demand for homes start to slide due to higher costs of borrowing, according to Corelogic. In Sydney, Australia's biggest city, home prices have fallen over 7% since prices started unwinding at the start of the year, just before interest rates lifted. Since hitting peak prices earlier this year, house prices in Melbourne have fallen nearly 5%. Since hitting peak prices earlier this year, house prices in Melbourne have fallen nearly 5%.

☆ Sorry, millennials, you're never getting a good home
▼ + stars: | 2022-09-29 | by ( James Rodriguez | ) www.businessinsider.com time to read: +13 min

Like a lot of millennials, Enrique Gonsalves is a victim of poor timing. For most millennials, born between 1981 and 1996, the path to homeownership has been fraught with pitfalls and false starts. Add it all up, and the homeownership rate among millennials is lagging that of previous generations. Compared with these generations, millennials have more debt, a lower net worth, and a worse chance of making more than their parents. Those factors, particularly the rise in student debt, have prevented millennials from getting a home.

☆ Premarket stocks: The bond market is crumbling
▼ + stars: | 2022-09-29 | by ( Nicole Goodkind | ) edition.cnn.com time to read: +7 min

New York CNN Business —The global bond market is having a historically awful year. Vanguard’s $514.5 billion Total Bond Market Index, the largest US bond fund, is down more than 15% so far this year. The iShares 20+ Year Treasury bond fund (TLT) (TLT) is down nearly 30% for the year. What’s next: The bond market may face fresh volatility on Friday with the release of the Federal Reserve’s favored inflation measure, the Personal Consumption Expenditure Price Index for August. If the report comes in above expectations, expect bond yields to move even higher.

☆ The Bank of England is snapping up bonds to stabilize debt markets — but that goes against its aim of stemming inflation. Here's what you want to know.
▼ + stars: | 2022-09-29 | by ( Phil Rosen | ) www.businessinsider.com time to read: +6 min

Friday eve means the weekend's just around the corner, but it seems like nobody told the British bond market. The balancing act, at worst, could mean a calamity for the British economy and prolonged volatility in markets. And at best, policymakers thread the needle and stabilize markets, tame inflation, and regain the confidence of traders and everyday folks dealing with a tough economy. A weaker currency means imports get more expensive, and higher bond yields mean government borrowing gets more expensive. What will it take for bond market traders to regain confidence in the UK debt market?

☆ Mortgage rates surge, closing in on 7%
▼ + stars: | 2022-09-29 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

Mortgage rates have more than doubled since the start of this year as inflation soared and led the Federal Reserve to hike borrowing costs. “The uncertainty and volatility in financial markets is heavily impacting mortgage rates,” said Sam Khater, Freddie Mac’s chief economist. Mortgage rates tend to track the yield on 10-year US Treasury bonds. As investors see or anticipate rate hikes, they often sell government bonds, which sends yields higher and mortgage rates rise. “The huge surge in mortgage rates over the last nine months has squashed many buyers’ budgets, leading to a significant pullback in transactions,” said Ratiu.

☆ U.S. mortgage interest rates jump to 6.52%, highest since mid-2008
▼ + stars: | 2022-09-28 | by ( ) www.reuters.com time to read: +1 min

Sept 28 (Reuters) - The average interest rate on the most popular U.S. home loan climbed to its highest level since August 2008, data from the Mortgage Bankers Association (MBA) showed on Wednesday. Rising mortgage rates are increasingly weighing on the interest-rate-sensitive housing sector as the Federal Reserve pushes on with aggressively lifting borrowing costs to curb high inflation. The yield on the 10-year note acts as a benchmark for mortgage rates. The cost of home loans has risen by more than a percentage point over the past six weeks. The MBA also said its Market Composite Index, a measure of mortgage loan application volume, fell 3.7 percent from a week earlier.

☆ What Cramer is watching Wednesday — oversold market bounce; promising Alzheimer's drug
▼ + stars: | 2022-09-28 | by ( Jim Cramer | ) www.cnbc.com time to read: +6 min

Citi crushes the autos with price target cuts: $78 per share from $87 for General Motors (GM); $13 from $16 for Ford (F). Citi lowers its price target on Caterpillar (CAT) $180 per share from $195. Downgrades NSC to neutral from positive (hold from buy), cuts price target to $218 per share from $275. Barclays cuts price target on AMAT to $85 per share from $95, keeps equal weight (hold) rating. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

☆ Record number of UK mortgage deals pulled in one day as market mayhem takes hold
▼ + stars: | 2022-09-28 | by ( Sophie Kiderlin | ) www.cnbc.com time to read: +2 min

Overall, 935 mortgage products were pulled from the market on Tuesday, according to data from money comparison site Moneyfacts. LONDON – Hundreds of residential mortgage deal offers in the U.K. have been pulled after market chaos sparked concerns about base rates rising as high as 6% next year. Overall, 935 mortgage products were pulled from the market on Tuesday, according to data from money comparison site Moneyfacts. HSBC and Santander are the latest major U.K. lenders to pause their mortgage product offering, while NatWest repriced their products, increasing rates. Earlier in the week, Virgin Money, Halifax and Skipton Building Society temporarily pulled some of their mortgage deals citing market developments.

Markets fear the plan will drive up inflation, forcing the Bank of England to push interest rates as high as 6% next spring, from 2.25% at present. “Were dysfunction in this market to continue or worsen, there would be a material risk to UK financial stability. To prevent that happening, the central bank said it would buy long-dated UK government bonds until October 14. Yields on 10-year UK government bonds fell sharply after the Bank of England’s announcement on Wednesday but remain elevated. UK interest rates have risen seven times since December 2021.

☆ US home prices climbed in July, but showed a 'forceful deceleration'
▼ + stars: | 2022-09-27 | by ( Anna Bahney | ) edition.cnn.com time to read: +4 min

But the market showed signs of cooling as rising mortgage rates pushed more prospective buyers to the sidelines. On a monthly basis, prices fell 0.2% from June, the first month-over-month decrease for the national index since February 2012. Tampa notched the biggest gains, with home prices rising 31.8% in July from the year before. Higher mortgage rates cooled demandThe home price reports highlight the cooling effect of rising mortgage rates. As investors see or anticipate rate hikes, they often sell government bonds, which sends yields higher and mortgage rates rise.

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