A Housing Pullback In 2017?
According to data compiled by the Federal Reserve Bank of New York, the 10-year term premium moved above zero for the first time in 10 months on the 14th of November, less than a week after Mr. Trump’s surprise Electoral College win. This means investors were quickly being forced to pay significantly more for a risk-free Treasury note than would at the time have been expected given prevailing expectations on both inflation and real interest rates – all within days of the election.
