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inflation: Making English Out Of Fed-Speak (June 2007 Edition) - 06/29/07 05:16 PM

The Fed left the Fed Funds Rate unchanged again today for the eighth time in a row after 17 consecutive hikes.  None of this is news to us.
The Fed's press release, though, highlights a key theme about our country's economy:  inflation may be moderating, but we are far from in the clear. 
In other words, there are still a handful of outside factors that could push the Fed back out of their "comfort zone" and force them to raise the Federal Funds Rate.
Mortgage rates were up only slightly after the Fed's remarks which were neither tough nor soft on inflation and the economy.
SourceParsing the … (0 comments)

inflation: The Week In Review (June 18, 2007) : What To Watch For - 06/18/07 09:33 AM

After a tame Consumer Price Index report Friday, mortgage bonds staged a brief rally and rates retreated slightly.
Earlier in the week, mortgage rates were at their highest point in almost a year.
Unfortunately for rate shoppers, mortgage investors are behaving like Dr. Jekyll and Mr. Hyde right now.  One moment, they hate the outlook on inflation; the next, they love it. 
What's really confusing is that data points that made mortgage rates move higher or lower 6-9 months ago (i.e. jobs report, crude oil prices, housing stats) are now being discounted. 
Broader data points such as CPI seem to have taken center stage.  … (0 comments)

inflation: Champagne Wishes and Caviar Dreams - 06/18/07 07:39 AM
Remember the old tag line from the show "Lifestyles of the Rich and Famous", as Robin Leach wished us all "champagne wishes and caviar dreams"? And sure enough, these days more and more people have the trappings of the rich. But is it the new home, maybe a shiny BMW, or more vacations? No. It's getting hit by the Alternative Minimum Tax (AMT), which was originally designed to hit only the ultra-wealthy. Not really the "you have arrived" feeling you had hoped for.
The nasty AMT isn't just for the wealthy anymore, as it is trapping an alarming amount of the middle … (0 comments)

inflation: What Role Do You Play In This Rising Mortgage Rate Environment? - 06/13/07 10:17 PM

The American Consumer keeps spending. 
This morning, the monthly Retail Sales report showed a larger-than-expected jump.  Even after stripping out elevated gas prices, the sales increase was more than double the expected amount. 
The economy surges ahead, fueled by everyday spending, and this does not bode well for the future of mortgage rates.
The recent run-up in mortgage rates is largely from inflation fears.  With inflation, investors' dollar-denominated securities have less value over time because the dollar itself is worth less. 
Runaway consumer spending exacerbates the potential for an overheated economy and that is why today's figures are slightly troubling.  Each time … (1 comments)

 

John Caylor- Post Falls, ID Mortgages

Post Falls, ID

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Infinity Financial Group

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