REM - Losing Your Religion in Housing

According to Mortgage News Daily, the average rate on the popular 30-year fixed mortgage just crossed 5%, now standing at 5.02%. This ranks among the highest in the last eleven years or so.

And if you believe that the housing market has indeed become an integral part of The Fed's "wealth effect" strategy dating back to Greenspan, then this should alarm you. On top of that, we have a sloppy market which got hit today on a likely trial balloon from The Fed about shrinking the balance sheet aggressively as soon as next month. 

All of this could easily reverse the rally from the last three weeks, as sentiment for new all-time highs seems to have become popular. 

REM, a mortgage REIT, is a good "tell" as to whether housing is truly losing its religion for the long-term bull thesis. 

As you can see on the daily chart, below, into the closing bell, the AAPL TSLA TWTR strength of late may have been masking some monsters hiding in the closet here...