How Fed Tightening Of Rates, Not Balance Sheet, Impacts Mortgage Rates (NAHB Traffic Tanks In August)

The US housing market is sensitive to Fed “catch-up” monetary tightening. For example, the NAHB’s traffic of prospective homebuyers declined rather dramatically in August as The Fed tightened rates and the 30yr mortgage rate rose. That is what I call a “Nestea Plunge.”