CNBC TV show host and former hedge fund manager Jim Cramer recently issued a warning for the economy in response to the recent mortgage rate hikes.
On "Squawk on the Street" this week, Cramer said, "We're going to see more and more bad earnings because [a] 5 percent mortgage is the end, that is the line in the sand," adding, "The mortgage rate is very high in this country." Cramer has been critical of the recent rate hikes by the Federal Reserve, arguing that a better strategy would be for implementing rate hikes only when the overall economic data supports it, rather than "[being] blinded by an arbitrary desire to normalize monetary policy," CNBC reports.
The 30-year fixed-rate mortgage rate was at 4.85 percent on Thursday, according to Freddie Mac, after spiking to 4.9 percent the prior week in the rising bond-yield environment. A year ago, the 30-year mortgage was at 3.88 percent. In recent weeks, Cramer has been critical of Federal Reserve Chairman Jerome Powell, saying the central bank is not taking into account signals of a slowing economy, particularly in housing-related companies, in charting a course for interest rates next year.
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