Posted on 09/13/2013 9:47:37 AM PDT by whitedog57
Rising interest rates are really starting to hit the economy. The Reuters – University of Michigan Survey of Consumer Confidence Sentiment was forecast to be 82.0 but printed at 76.8 after a previous print of 82.1. This is the lowest print in 5 months.
Rising Treasury and mortgage rates are definitely a cause of declining consumer confidence. Notice that the 10 year Treasury yield began to decline in mid 2011 and consumer confidence began to rise (green box). Then Treasury rates began rising on May 1st and consumer confidence fell (red box). With a lag.
consumerconfid091313
We know that mortgage purchase applications have fallen with rising mortgage rates. This contributes to lower consumer confidence.
MBApurchbr300913121
And higher rates are of concern to consumers since they may fear slowdown in job creation. Mortgage purchase applications are declining along with the employment-to-population ratio.
empopombapurch
The Fed meets next week. Stay tuned!
The low interest rates have been like a blood transfusion to a patient that is badly hemorraging. It’s keeping us alive, but not fixing the problem.
We are hemorrhaging jobs due to the low tariff policy we’ve had for the last 40 years. We need to restore the tariffs to where they were our first 190 years.
The low interest rates have been like a blood transfusion to a patient that is badly hemorraging. It’s keeping us alive, but not fixing the problem.
We are hemorrhaging jobs due to the low tariff policy we’ve had for the last 40 years. We need to restore the tariffs to where they were our first 190 years.
No, it's keeping Big Government alive. It is destroying the rest of us. Been to the grocery store lately? Bought any gasoline?
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