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.
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