Oct. 20 at 10:34 PM
https://www.investopedia.com/30-year-mortgage-rates-fall-for-a-second-day-oct-17-2024-8729388
The recent increase in 30 year mortgage rates is only temporary.
We moved down to 5.89% after the FED cut rates in September and have climbed up to 6.49% average now.
I say by mid 2025 we will be around 5.5% which will allow this housing expansion to continue.
We very well could see 4.9% mortgage rates by early 2026.
That will fuel the peak of the housing market cycle for this cycle.
It might bleed into 2027 due to hurricane damage, but sometime within 2-3 years we peak out.
Watch unemployment numbers as we get into early 2026.
Current unemployment rate is 4.1% but if you remove temporary government employment the unemployment rate is actually 4.5%
While that’s still a very healthy rate, watch for the move to 5%
Weakness will be around the corner when you see that level.
Oil will make a parabolic move into 2027-2028 before the collapse.
Accumulate on weakness.
$XOP $OIH $EIPI $XOM