Yo Adrian, Are Rising Mortgage Rates Gonna Knock Us Out!

Yo What's This Mortgage Rate Stuff?

Listen up Adrian! They're saying mortgage rates are climbin' faster than I used to climb those steps ya know before Mickey started yellin' about my ribs. Seems like folks are dumpin' U.S. Treasury bonds which ain't good for nothin' but holdin' up my sweatpants these days. And that 10 year Treasury? Yeah mortgage rates are stickin' to it like Paulie sticks to free beer. It's like when Apollo Creed was chasin' me around the ring only this ain't for a belt it's for your home!

Could China Be Throwin' Punches?

Now the word on the street is that some countries might be sellin' off these Treasury bonds 'cause of some tariff thing with the President. But get this Adrian: there's talk China might start unloadin' mortgage backed securities (MBS) too! Like imagine tryin' to train a chicken to box and then it starts kickin' instead. It's unexpected! Guy Cecala from Inside Mortgage Finance is sayin' if China gets serious they could hit us hard where it hurts. Ya know like when Drago hit me in the third round? Powerful stuff Adrian powerful!

Japan and Canada Jumpin' In The Ring Too?

So apparently China and Japan are big players in this game holdin' a big chunk of our MBS. And China's already started sellin' some off! Japan might be doin' the same and if they both start goin' full force along with Canada those mortgage rates are gonna skyrocket! It's like tryin' to run up those museum steps with weights on your ankles. Eric Hagen from BTIG is worried that if these countries start retaliatin' it'll scare the market. Scared investors mean higher rates and that ain't a good look Adrian!

Spring Housing Market Down For The Count?

The housing market's already wobblin' like I did after that fight with Clubber Lang. Prices are high and people ain't feelin' so confident. Then you got the stock market goin' crazy and folks are worried about their jobs. And get this some people are sellin' their stocks just to make a down payment on a house! If China starts dumpin' MBS Hagen says it could really spook the market. People gettin' scared is like me tryin' to do a commercial; it's a disaster!

The Fed's In Our Corner... Or Are They?

The Federal Reserve they're a big owner of MBS too but they're lettin' 'em roll off their books to shrink their balance sheet. That's like lettin' your trainer leave right before the big fight! Back in the day during tough times like the pandemic they were buyin' MBS to keep rates down. But now? Hagen's sayin' it's puttin' even more pressure on the market. It's like Apollo sayin' he's gonna give me a rematch... but only if I fight him with one arm tied behind my back!

Gonna Fly Now... Or Fall Down?

So what's the bottom line Adrian? Well things are lookin' tougher than a plate of Paulie's spaghetti. Mortgage rates are climbin' countries are sellin' and the market's gettin' jittery. We gotta stay focused keep trainin' and hope for the best. Like I always say 'It ain't about how hard you can hit but about how hard you can get hit and keep movin' forward.' So keep movin' Adrian! Keep movin'!