Interest rates shot way higher today, and I will explain why below. I. “2005 Mortgage Man” will be studied by anthropologists for centuries. This is because there has never been a more confused, obnoxious, ostentatious, and non-self-aware Human Being. After the 2008 meltdown, there were myriad news articles and podcasts devoted to the downfall of “2005 Mortgage Man,” as most of the demographic crashed from high six-figure incomes, mansions, and Lambos into near-poverty in their moms’ basements. These are the conditions that fostered “2005 Mortgage Man:” (1) insanely loose lending standards made almost everyone eligible for mortgage financing, irrespective of income, assets, or credit; (2) loan volumes hit record levels that we’ve never come close to hitting again, with almost 24 million mortgages originated in 2003 alone; (3) barriers to entry for becoming a “mortgage man” were extremely low; and (4) interest rates were falling every year while home values were fast increasing every year.Read More