First time in history. US 10-year Treasury yield drops BELOW 1%

[Roland99]

Stock Swoon Accelerates as 10-Year Yield Falls Below 1% After the Fed Cut Rates
https://www.marketwatch.com/articles/stocks-swing-wildly-after-the-fed-made-a-surprise-rate-cut-51583249093?mod=mw_latestnews


U.S. 10yr 0.960 -0.2061

[mahatmakanejeeves]

1. Making 1 percent beats losing 20 percent.

But if yields go back up, the value of your bonds drops.

Some days, you just can't win.

[Roland99]

2. The plus side is mortgage rates *should* drop from this

When mortgage rates were at their lowest back in late 2012, 10-year yields were still above 1.5$

We refi'd and got 30yr at 3.25% (just missed on a 1/4 pt lower by like a week when we finally locked)

[ScratchCat]

3. Mortgage rates are already too low

They don't need to drop further. They should be in the 4-5% range.

[Roland99]

4. yeah...that would probably keep prices from getting too high

this will encourage spikes in housing prices.

Prices in my neighborhood in central FL are approaching their 2007/2008 pre-recession highs.

We bought in 2010...right about at the trough.

[ScratchCat]

5. I'm in Tallahassee

and we have surpassed the price levels of 2007/2008. Its absolutely ridiculous and builders are building houses like there is no tomorrow(no pun intended). With the increase of the price of materials due to the trade war, artificially low rates have sent prices through the roof. It is not sustainable. The new home market is being driven by less than 10% of market purchasers at this point and the price of existing houses in desirable neighborhoods have shot up because so few people have wanted to sell over the past nine months or so(nobody seems to have a good explanation why there are so few sellers).

[Roland99]

6. Housing on the west side has really exploded and it ain't cheap

Between me and Disney area is really filling in

Hard to find single family homes under $400k for new construction

Existing homes get snapped up in days. Two in my neighborhood (homes are 10-12 years old now) went Pending in less than a week and the prices were not conservative at all

[Loge23]

7. This is another nightmare scenario for housing

Most of your post could have been pulled from 2006.
This is indeed not sustainable. This time, we will have no resources left from the FED.
Elect an idiot, get a catastrophe.

[DFW]

8. And the dollar has dropped about 4 cents on the euro in a WEEK

With the eurozone being basically weak to anemic, and nothing much to recommend the currency (other than that Trump is not responsible for it) that is a big negative vote for the USA.