UBS On-Air: Paul Donovan Daily Audio 'House problems'

US inflation data's use of owners' equivalent rent masks real household spending-power losses from mortgage rates now above 7%.

• Mortgage rates cross 7%: US mortgage rates rose above 7% despite Treasury Secretary Bessent's efforts to contain bond yields, drawing outsized media attention to the round number.
• Hidden affordability squeeze: Effective rates on outstanding US mortgages keep creeping higher for new borrowers, but this cost isn't captured in real income data.

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