From Dave Meyer @thedatadeli: The economic picture for 2023 is super unclear but there is an actually feasible scenario where mortgage rates fall.
The thinking is that if there is a recession investors will flock to US Gov bonds. With the increased demand for bonds, prices rise, and yields fall. Mortgage rates are extremely correlated to bond yields so if bond yields fall so will mortgage rates - that’s how it works.
Not saying this will happen but the logic checks out if there is a prolonged or widespread global recession.
What do you think will happen to rates next year???
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