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Cheaper Gas and Lower Rates

By
Mortgage and Lending with Equity Resources NMLS 67179 Licensed in NC

I think we really need lower interst rates, and so I'm still sniffing around for bad news in the economy...  the President mentioned again today that we're in "pretty decent shape", and the economists are predicting that tomorrow the Fed will do a "one and done," signalling that fear of inflation is stronger than the worries about the economy slowing down more. 

Well, I think there might be a flaw in that logic. Don't get me wrong, the weak dollar is undoubtably a leading gascause of higher gas prices - but did you see the earnings reports from the GAS COMPANIES TODAY?? (BP LLC, Europe's second biggest oil producer, reported a 63 percent surge in first quarter net profit on Monday after crude oil prices soared to an all-time high and natural gas prices also rose). There must be OTHER contributing factors besides a weak dollar?!?

Other snap shots today indicate that Consumer Confidence is way down (guess those $75 fillups at the gas station bother other folks too!) and the Case Shiller report shows folks in most parts of the country are still "losing" equity (thankfully that's not happening in my little corner of NC!).

I read the reports about LandSource Communities and their partners, Kimball Hill Homes who filed BK.  This is particularly noteworthy because "the California Public Employees' Retirement System, received the default notice Tuesday." Are we facing problems with PENSION funds while Gas Prices are going through the roof??? 

Maybe the President's right - and I'm not focusing on the real issues...  But from where I'm standing... We have some problems in the Economy, and it's going to take more than a couple of "Dubbya Dollahs" in our bank accounts to fix it.

I'm still on the prowl for lower mortgage interest rates and cheaper gas... but I'm thinkin' it could be a LONG wait!

Karen Luke
South Metro Property Management, LLC - McDonough, GA
Henry County Real Estate

I am so ready to trade in for a smaller car.

Apr 29, 2008 10:18 AM
Geoff Thomas
Golf Savings Bank - Snoqualmie, WA

You can thank a lot of the fuel prices on the comadaties market.  Who are the oil companies to say no to someone who is willing to pay more for their product?  And who is the president who has his hands in the oil companies pockets to do anything about the fuel prices? 

First thoughts are that gas prices are rediculous which they are.  But have you looked at the price in the green line on the gas station signs showing how much the cost of Diesel is?  Where diesel takes less to make than gas (it's actually more or less a byproduct of making gas) and it used to be a good bit below regular unleaded it's now WAY over the cost of Super!  "So what" you say "I drive a gas powered vehicle."  Have you noticed that the price of things like food and household supplies have risen quite a bit over the last couple of years too?  Do you wander why?  It's because everything that gets to the grocery store, or anywhere for that matter, travels in some point along it's journey.  So the diesel prices aren't only hurting those of us who drive diesel powered vehicles at the pumps but EVERYONE that buys anything at the stores as well.  When you consider that the cost of diesel is in the $2.00 per gallon range in Mexico and under $1.00 in the middle east It really makes you stop and wonder what's going on.  Especially when you see the statistics above of how much profit the oil companies are making.  Exon has been the #1 most profitable company for a few years in a row now.  Now that really makes you go hmmmm...

Apr 29, 2008 10:52 AM
Dave Klatch
The Reid Team @ Keller Williams Arizona Realty - Scottsdale, AZ

Love your Gas picture! That is hilarious! I just cracked up when I saw it, especially because it is so true!

Thanks for the laugh today!

Apr 29, 2008 11:32 AM
Eleanor Thorne
Equity Resources - Cary, NC
Advantage Lending 919-649-5058

Karen!  ME TOO!  Can't figure out how I'm gonna' stow all my stuff though!

Geoff!  I TOTALLY agree!  Someone is going to have to do something about it - but it will be AT LEAST a year before anything happens in a new administration.

Dave!  I started not to put it up - but my car takes PREMIUM and I TOTALLY relate!

 

My dad thinks this is so much like the economy of the 70s we will see rates at 12 to 14 percent! 

Apr 29, 2008 11:57 AM
Justin Williams
Independent - Virginia Beach, VA
Loan Officer
Hi Eleanor - Love the picture btw!  Yes I am too searching for the lower gas rate prices because unfortunately my car is too stubborn and snobby that it can only be filled with premium gas :(  Sniff Sniff
Apr 29, 2008 12:06 PM
Kent Simpson
Realty One Group Mountain Desert - Tucson, AZ
Real Estate Is About People

I too love the gas picture!  Great stuff.  Call me a cynic, but does anyone pay attention to Dubya anymore?  He's such a lame duck that Cheney's next hunting trip will be the administration's 15 minutes of fame for the year.

I have a gut feeling that the whole country is in a "wait & see" mode when it comes to the economy--will that mindset lead to a type of "economic paralysis"???

Apr 29, 2008 02:34 PM
Stanton Homes
Stanton Homes - New Home Builder - Raleigh, NC
Design/Build Custom Home Builder in North Carolina
I'd just really like to know when we can put some pressure on the gas companies.  It seems like the price of gas goes up for very little reason - and the oil companies have been raking in record profits, year after year.  If the only thing going on is supply, well there shouldn't be those kinds of profits!  Reminds me of the steel barons in the early part of last century. 
Apr 29, 2008 10:52 PM
Don Draughn - Mortgage Professional
High Point, NC
I am with you on this Eleanor.  I just hope we don't see things like they were back in the 70s though.
Apr 30, 2008 01:06 AM
Clint Miller
Real Estate Pipeline, Inc. - Missoula, MT
I just sold my small car and got a Dodge Grand Caravan.  Not because of the milage, but because I have 3 kids.  We dont fit in an Escort any longer.
Apr 30, 2008 01:07 AM
Scott Geary
Infinity Home Mortgage Company Inc - Allentown, PA
Your Pennsylvania Mortgage Source
Sunday on my way to visit the my girls parents we took notice of gas at 3.60 a gallon. Just up the road there were lines at the Hess station apparently because of the bargin price of 3.54 a gallon. Just as the public was dupped into thinking anything less than 3.00 was a bargin after Katrina, we'll eventually see anything less than 4.00 as a bargin. As far as rates, though I don't see then at the level of the late 70's early 80's, I do think that 7 - 7.50% is just around the corner. Though I have thought that for the last 2 years. One thing for sure.....Dubbya's done, brighter days ahead!
Apr 30, 2008 01:54 AM
Bonnie & Terry Westbrook
Westbrook Realty - Ada, MI
Grand Rapids MI Real Estate
The hunt for reduced rates is, I'm afraid, not going to produce that which ye seek. Gird up yer loins, interest rates will probably rise and shortly, too. Banks are losing money, oil companies are making money, and what can we do but blog?  The sign is HI-larious!
May 05, 2008 03:43 PM
Barb Overmann
Keller Williams Realty - Lugoff, SC
How are the gas prices/food prices, etc changing your everyday activities?
May 05, 2008 04:36 PM
Tracy Santrock
Santrock Realty Group Inc. , - Cary, NC
Raleigh - Cary Broker

Hi Eleanore,

Thanks for stopping by.  It was nice to finally meet you the other day! Guess I'll have to go to the "Dash for Cash" Friday - maybe it will help w/the 'er gas prices.

May 08, 2008 12:54 AM