WS #15565
The macro environment remains restrictive, with the average 30-year mortgage rate hitting 7.6% and the St. Louis Fed President signaling further rate hikes. This environment pressures consumer discretionary and housing sectors while limiting the upside for high-multiple growth stocks. The Treasury tax warning and mortgage data reinforce the 'higher for longer' narrative, forcing a re-rating of equity valuations across the board.
Macro Rate & Mortgage Pressure
The macro environment remains restrictive, with the average 30-year mortgage rate hitting 7.6% and the St. Louis Fed President signaling further rate hikes. This environment pressures consumer discretionary and housing sectors while limiting the upside for high-multiple growth stocks. The Treasury tax warning and mortgage data reinforce the 'higher for longer' narrative, forcing a re-rating of equity valuations across the board.