Interest Rates and the Media

           Interest rates and the media.  We all know that headlines sell papers.  That was proven all too well by Pulitzer’s yellow journalism.  The advent of newspapers like the New York Post and Daily News with headlines front and back did indeed sell papers to the common man who worked hard for his hourly wage.  Long after that philosophy was manifested in radio and then visual news arenas.  Today there are countless news magazine shows on all sorts of topics.  This brings me to yesterday headline about rates and the power of hyperbole.  “NATIONAL MORTGAGE NEWS!!”  RATES CONTINUE TO DROP, 30 YEAR NEARS ITS RECORD!!”  When they quote the actual average 30 year rate at 3.35% you stop and think “Who is gettting that rate?  If you listen closely, however, almost sotto voce, the voice goes on to say with an average of .7 of a point.  .7 of a point on a $400,000 loan is $2,800.  Clients of course all heard the headline and want the lower rate.  They are not inclined to pay the almost whispered points.  Sometimes headlines work against.  Shame on you Joseph Pulitzer!