Lock All Mortgage Rates Immediately

Posted by: Brian Brady on May 14th, 2008

This is a stagflation fear we’re seeing:

The central bank can’t be “complacent about inflation,” Janet Yellen, President of the Fed Bank of San Francisco, said in a speech yesterday. Recent measures of consumers’ outlook for prices “highlight the risk that our attempts to deal with problems in the real economy could lead to higher inflation expectations and an erosion of our credibility,” she said.

Yellen also said she anticipates inflation will slow as the labor market weakens and “commodity prices level off,” echoing comments by other policy makers.
Investors project the Fed will keep the benchmark interest rate unchanged at its next meeting on June 25. That would be the first pause since the central bank started cutting rates in September.

Rising prices from overseas, reflecting the drop in the dollar, are another source of concern. U.S. businesses have leeway to boost prices as companies abroad charge more.

The mortgage markets will overreact for the next 5-10 days. Mortgage rates should shoot up quickly.

Share

Comments

3 Comments on “Lock All Mortgage Rates Immediately”

Mike Farmer

thanks, Brian, I’ll pass this along. An investor friend the other day was telling me predicts a rise.

Mike Taylor

Mortgage markets overreact??? No way. Thanks for the heads up I will pass this along to a few clients.

Brian Brady

I was early on this. As rates have improved, I thing the risk of higher rates is even greater. I reiterate the lock all loans recommendation

Leave a Comment

 

For Real Estate Agents

Online Marekting Solutions

For Home Buyers and Sellers

e.g., 1250 S Main St, Burbank, CA or 91506
     Search Foreclosures    Search New Homes    Search Rentals    

Blog Categories

Blog Archives

Real Estate Blogs

Top Articles

Recent Comments

Guaranteed LeadsReferral Lead ProgramListings PackageVisits to your WebsiteFind REALTOR®Homes For SaleHome Values