October 27, 2022· 45 min

A Broken Market Is Causing Mortgage Rates to Surge

Guillermo Roditi Dominguez

Orality

Model

83%

Oral-dominant (speeches, podcasts, storytelling)

Speaker Breakdown

HostTracy Alloway(1,660 words)

M:29%

HostJoe Weisenthal(1,662 words)

M:29%

GuestGuillermo Roditi Dominguez(4,604 words)

M:28%

Oral Indicators

Agonistic29%

absolutely, very, huge

Engagement83%

you, our, your

Memory Aids100%

listen, now, well

Repetition100%

know (232x), like (111x), they (83x)

Parallelism87%

And I'm Joe Weisenthal...., And we had that really good ep..., And I know like, this is all I...

Sound Patterns65%

57 question(s), alliteration: "markets move", alliteration: "barclays brief"

Formulaic Phrases7%

you know what, i mean, to be honest

Literate Indicators

Hedging6%

could, quite, maybe

Passive Voice8%

is backed, be broken, are delighted

Abstract Nouns15%

investment, government, question

Subordination6%

because, though, until

Sentence Length39%

Avg: 14.7 words/sentence

Word Complexity46%

investment, analyze, anticipate

Academic Markers3%

according to

Impersonal Style17%

723 personal pronouns found

Descriptive Style87%

really, absolutely, implicitly

Description

US mortgage rates have jumped to a two-decade high, with the average 30-year home loan now running above 7%. Of course, this makes sense. The Federal Reserve is raising benchmark interest rates and that's supposed to translate into a tightening of financial conditions, which includes housing credit. But the jump in mortgage rates far exceeds the increase in benchmarks, with the difference between average mortgage rates and the yield on equivalent US Treasuries at its highest on record. So what's going on? On this episode, we speak with Guillermo Roditi Dominguez, managing director at New River Investments, about what's happening deep in the market for mortgage-backed bonds to make rates surge this much. As he describes it, a sea change is helping to keep borrowing rates extra high. See omnystudio.com/listener for privacy information.

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