JPM - Peter Schiff Predicts Skyrockerting Mortgage Rates By Year-End — Flags Fed's Impending Balance Sheet Troubles | Benzinga
Peter Schiff, renowned economist, predicts a significant surge in 30-year fixed-rate mortgage rates, predicting a climb to 9% by the end of the year, sparking concerns over the impact on the Federal Reserve’s balance sheet.
What Happened: Schiff took to Twitter on Tuesday, forecasting an imminent hike in 30-year fixed-rate mortgages to 9%, almost tripling current rates. This, he warns, could lead to a ballooning of the Federal Reserve‘s balance sheet due to insolvent banks offloading their heavily underwater mortgage-backed securities (MBS) onto the Fed.
The 30-year, fixed-rate #mortgage is now 7.9%. Not only will the rate break 8%, but 9% is likely before year end. That will effectively triple mortgage rates, causing the Fed's balance sheet to explode, as insolvent #banks dump their highly underwater MBS on the #Fed at par. — Peter Schiff (@PeterSchiff) September 26, 2023
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