Inflation is uncomfortably high...

Services for Real Estate Pros with Coldwell Banker Global Luxury CalBRE# 01379585

U.S. Treasuries fell, adding to five weeks of losses, as Federal Reserve Bank of Cleveland President Sandra Pianalto said inflation is ``uncomfortably high.''

The price of the 4 1/2 percent note due May 2017 fell 3/8, or $3.75 per $1,000 face amount, to 94 30/32. Yields move inversely to prices.  The two-year note yield gained almost 2 basis points to 5.01 percent.

`Uncomfortably High'

The Fed ``has described our core rate of inflation as being uncomfortably high and has stressed the importance of further moderation in inflation,''

Fed policy makers kept the overnight lending rate between banks at 5.25 percent at their last seven meetings.

Bottom Line:  About a 50/50 chance the Fed's benchmark rate will rise to 5.5 percent soon.

Comments (8)

Lenn Harley
Lenn Harley,, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

You're not the only one that is concerned about this.  I got a flurry of buyer inquiries this a.m. and it appears that the few I had an opportunity to speak with are getting in the market feating rising rates.


Jun 11, 2007 09:48 AM
Ron Pickett
Coldwell Banker Global Luxury - Laguna Beach, CA
REALTOR® Coldwell Banker Laguna Beach

Yep, I think it is time to get off the fence!  Thanks for the comments Lenn Harley.


Jun 11, 2007 02:16 PM
Marlene Bridges
Village Real Estate Services, Inc. - Laguna Hills, CA
Laguna Homes|Laguna Condos|Laguna Real Estate
Hey Ron - Thanks for the market update.  Keeping all things in perspective, we must also note that rate are still very favorable and quite low.  And, while some loan programs have disappeared, there are some great ones that have emerged.  You have been able to share those innovative programs with our clients and that has been a great tool in helping people to move forward to live their dream of home ownership.
Jun 12, 2007 04:24 AM
Ron Pickett
Coldwell Banker Global Luxury - Laguna Beach, CA
REALTOR® Coldwell Banker Laguna Beach
Yes, Marlene Bridges, SoCal REALTOR®-CRS-SRES-ePro, you are very right!  Sometimes the "gloom and doom", "fire and brimestone" is fun though.  Banks will always find ways to loan money, and investors will always find ways to invest profitably.  Thanks for the comments.
Jun 12, 2007 01:58 PM


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