Housing stocks get breathing room as 10-year Treasury yield rises
According to Forbes, a backup in the 10-year, Treasury yield took mortgage rates along for the ride, which in turn, gave the housing market extra breathing room in the third quarter. The 10-year, Treasury yield has been edging higher. Forbes notes that:
An ongoing debate continues to simmer over whether the slipup is a perfectly reasonable pause or a sign that concerns like the ongoing debt fight in Washington and the eventual reduction in asset purchases like the Federal Reserve are about to cut the legs out from under the housing recovery.
Instead, or at least until the government resumes normal activity, investors will have to rely on private sector readings like the National Association of Home Builders monthly sentiment index, which was flat last month to halt a string of four straight increases.