Japan Just Crushed Your Home Value (No, Really. They Did)
Summary
Clint Russell analyzes the recent Fed rate hike and the surge in 30-year mortgage rates to 7.5%, arguing that long-term yields are driven by global factors like the Japanese yen carry trade unwind and energy shocks rather than just Fed policy. He warns that high rates will freeze the housing market, reduce affordability, and expose banks to significant risks through unrealized losses on mortgage-backed securities. Russell predicts a potential bear market and banking contagion, advising listeners to hold liquid assets like T-bills rather than entering the real estate or stock market at curre…
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