XRP Advocate Warns Of Economic Shift Amidst Rising Mortgage Rates

Economic landscapes are undergoing significant shifts as rising mortgage rates prompt analysis of their implications. Charlie Bilello, Chief Marketing Strategist, recently tweeted a concerning trend that three years ago, a 30-year mortgage rate was 2.91% with a median existing-home price of $306,000 in the US. Today, that mortgage rate has surged to 7.23%, alongside a median home price of $407,000.

XRP Advocate Deaton Predicts Pre-Election Rate Reduction

Responding to this observation, prominent XRP advocate John Deaton pointed out that such numbers hint at an impending shift. Speculating on future actions, Deaton suggested the Federal Reserve might opt to lower rates before the upcoming election. Charlie also stated that the above-mentioned transformation corresponds to a $20,000 jump in down payment (20% down) and a staggering 117% surge in monthly payment, from $1,020 to $2,216.

This context dovetails with recent reports indicating the interest rate on the most popular US home loan reached its highest point since December 2000, culminating in mortgage applications sinking to a 28-year low, Reuters reported.

The Mortgage Bankers Association disclosed that the average contract rate on a 30-year fixed-rate mortgage escalated by 15 basis points to 7.31% in the week ending August 18. This movement was propelled by surging government bond yields reminiscent of the 2007-2009 financial crisis.

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Will Crypto Survive In This Economic Background?

In light of the current state of the economy, Wall Street powerhouse JP Morgan published a report with a unique viewpoint on the future of the cryptocurrency sector. According to the analysis, the latest correction and liquidation events in the cryptocurrency market may be signaling the end of this turbulent phase.

According to JP Morgan’s analysis, which focused on CME Bitcoin futures, the process of reducing long positions appears to be coming to an end rather than just getting started. This result is consistent with the overall monetary policy of the Federal Reserve. The study emphasized how cryptocurrency traders have taken up bullish positions in reaction to encouraging trends.

The connection of the rising interest rate scenario with the dynamics of the cryptocurrency market adds a fascinating dimension to the evolving financial landscape. Analysts and investors stay watchful as markets cope with altering variables, looking for patterns that could define the next phase of economic shifts.

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