Here is an interesting snip about mortgages and the housing situation both in the US and Canada by Dave Rosenberg in Monday’s Breakfast with Dave. Once again, this Houdini recovery has involved a situation where mortgage rates have plunged and yet Treasury bond yields have been rising – 30-year fixed rate mortgages have fallen to 4.93% and are sitting are record-tight spreads over long Treasury bonds (see Chart 7). Historically, the average spread is 150bps and this differential is now 20bps. …

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The Mortgage Bubble