Tuesday, January 31, 2023 / by Brittany Aspenson
Recession Or Not, Mortgage Market Is Starting To Come Back Strong
The United States economy continues to produce mixed signals about whether or not the country is headed for a recession. This past week the Commerce Department reported that the United States’ gross domestic product (GDP) grew by 2.9% in Q4—only slightly higher than the 2.8% GDP prediction from investors.
Yields on Treasury notes rose after the release of the report with the 10-year yield climbing 2 basis points to 3.485%. The yield on the 2-year Treasury note also increased, moving up by 3 basis points to 4.166%. The 10- and 2-year yields have been inverted since June of 2022 which is typically a strong indicator of a recession.
The labor market also continues to show resilience with jobless claims continuing to decline week-over-week. That is a sticking point for the Federal Reserve as it continues its quantitative tightening (QT) measures to try and reign in inflation. A strong labor market may indicate that QT measures are not working and need to be tighte ...
Yields on Treasury notes rose after the release of the report with the 10-year yield climbing 2 basis points to 3.485%. The yield on the 2-year Treasury note also increased, moving up by 3 basis points to 4.166%. The 10- and 2-year yields have been inverted since June of 2022 which is typically a strong indicator of a recession.
The labor market also continues to show resilience with jobless claims continuing to decline week-over-week. That is a sticking point for the Federal Reserve as it continues its quantitative tightening (QT) measures to try and reign in inflation. A strong labor market may indicate that QT measures are not working and need to be tighte ...
