( HINT: Click-and-drag left-to-right on a chart to zoom in to a specific date range. Double-click on a chart to zoom back out. )
30 Year Mortgage Rate vs. the Stock Market
This chart shows the 30 Year Mortgage Rate along with the Consumer Price Index (CPI) and Federal Funds Rate, in relation to the S&P 500. Mortgage Rates are obvious candidates for market timing study, as the housing market accounts for roughly 5% of GDP. Rates typically respond to market conditions, however, so are usually a lagging stock market indicator. Recent manipulation by the Federal Reserve has distorted the study for decades to come. We will continue to chart mortgage rates for future study, but do not expect them to be valuable in timing the market.