A Ceiling That Actually Matters

A Ceiling That Actually Matters

The debt ceiling debate is all over the news, but it's a different ceiling is commanding more of the bond market's attention.  Still, we wouldn't say the debt ceiling is irrelevant, so let's take a brief moment to address its implications for the housing and mortgage markets. The most direct effect of the debt ceiling debate is a general ebb and flow of risk sentiment in the market.  If it's resolved without issue, investors may be slightly more interested in buying stocks and selling bonds.  The latter puts upward pressure on interest rates and it was the general theme this week. The 10yr Treasury yield is a good benchmark for rate momentum.  Some of this week's upward momentum may be attributed to potential progress on the debt ceiling, but we really didn't see any compelling ev