Inflation rumor raises its ugly head, Consumer Confidence down

By
Mortgage and Lending with Guild Mortgage Co - Oak Harbor WA

Now, a new (not really) word is creeping into the rate discussion, inflation. Concern over the stimulus package and bail out cost, many economists are thinking that we could be on the verge of inflation. The next few days could be major turning points in the current mortgage environment. Today, the consumer sentiment figures came in at their lowest yet, even lower than expectations.

The Fed is kicking off their scheduled two day meeting today and it will be interesting to see what they do. Obviously, they can't lower the discount rate below zero, but what they have to say in their comments can have a huge effect on how the markets view what they are doing. The Fed policy announcement will be tomorrow afternoon.

I am expecting some mention about the possibility of inflation and if that happens, we will probably see a pretty quick jump in interest rates. If there is not mention of inflation, rates will probably continue to be flat.

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Ambassador
2,135,266
Respect Realty LLC
Respect Realty LLC - Milwaukie, OR
Brokers - Oregon / SW Washington Real Estate

I sure hope you are wrong, but we saw the same thing in the late 70's, let us hope we don't see a repeat of that... I'm not sure I could handle 18-19% home loans.

Todd Clark, Helping Families Home - www.IFoundYourNewHome.com

Jan 27, 2009 03:44 AM #1
Rainer
171,765
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

I hear you Todd, I also hope that doesn't happen.

Jan 27, 2009 03:54 AM #2
Rainmaker
400,528
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

Our first official FOMC meeting of the year.  Cant wait to see what happens.  I agree with you about not touching the short term rate, but it will be interesting Im sure.  The market has been pretty steady for a few weeks now.  Slight adjustments to the YSP but no real effect on rates themselves.  Any wrong word can spark a jump in the wrong direction.

Jan 27, 2009 07:35 AM #3
Rainer
171,765
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

You know John, I think I could wait to see what happens. Too many times I haven't liked what they have done. Well, we will see.

Jan 27, 2009 08:15 AM #4
Rainmaker
400,528
John Cannata
214-728-0449 http://TexasLoanGuy.com - Frisco, TX
Texas Home Mortgage - Purchase or Refinance

Yeah, when I say "I cant wait" I just mean it will be interesting to see what comes out.  If they do not make another announcement all year, I'll be good.  They seem to stir up quite the hoopla.

Jan 27, 2009 08:39 AM #5
Rainer
171,765
Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

I hear you brother, I hear you!

Jan 27, 2009 09:34 AM #6
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Rainer
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Fred Chamberlin

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