"The whole system feels inflated right now..."
RATES RISING TO HIGHEST LEVELS IN LAST 5 YEARS
Interest rates continued to climb over the last week. Rates being reported today are near the highest levels seen in the last five years, leading to concern for buyers in the market shopping for a new home. Analysts still contend the spike in rates since the beginning of the new year is inflated and a correction is brewing. The hard question to answer is when this correction will take place. Year over year wage growth of 2.9% was reported this week, this is the largest increase since 2009. Increasing wages will continue to put pressure on rates moving forward. Most noteworthy this week is the downturn of the stock market, and how it did not lead to rising rates leveling off. Insiders believe the stock market is beginning to be negatively impacted by decreasing prices in the bond markets. The fear is the economy will not continue to grow with higher costs stemming from higher rates. The whole system feels inflated right now, next week will hopefully lead to clarity in what to expect in the coming weeks and months.