A Return to Normalcy
Normal Quote of the Day: “The only normal people are the ones you don’t know very well.” – Joe Ancis (comedian)
Wuss’up This Week: Got my son’s report card yesterday and it covered every possible grade on the scale (taking after me…I’m frightened for him). If this report card were a chart it would resemble last week’s rates, which had some wild swings down (when Bernanke spoke about the “weak economy”) and up (when the 30-year Treasury auction fell flat). This week we can expect the same big swings based on the reports that come out today (the CPI, which measures inflation), tomorrow (Weekly Jobless Claims; Housing Starts), and Friday (Leading Economic Indicators – which is an indication of future economic activity).
Where have you gone, Jed Clampett? Some say the future of interest rates will be tied directly to oil. OPEC failed to raise production levels and many are preparing for large price spikes throughout the rest of the year as demand increases and supplies remain the same. This would be bad for the economy, which means good for rates. The bad news for rates is that Fed Chief Ben Bernanke will officially stop buying bonds at the end of this month…which, in theory, should drive them up.
Interest Rate Update: But for now, rates remain at all-time lows. 30-year fixed rates hover in the mid 4s with ARMs about a point (or more) lower. If you are certain you are going to live in your home for less than 5 years, now would be a great time to refinance to an ARM. Don’t forget to let your family/friends/coworkers know that for any loan over 240k (purchase or refinance) I will waive all lender fees! This is a savings of over $1,400!
Normal Quote of the Day 2: “Oh my God, I’m getting pulled over. Everyone, just…pretend to be normal.” – Richard Hoover (Greg Kinnear), Little Miss Sunshine (2005)
Timeout for Trivia: Congrats to all who guessed Michael J. Fox as last week’s answer. Want to be entered into a drawing to win a Mr. T car air-freshener? Simply email me the answer to this week’s “What Song Am I?” question. Good luck: “This date in 1982 I hit #1 on the charts. You might joke and say Salt-N-Pepa wrote me, but no – I was written by a dude who was inspired by hearing comedian Spike Milligan say ‘black notes, white notes, and you need to play the two to make harmony, folks.’ I stayed number #1 for 7 weeks…so how can people say I was performed better by Eddie Murphy and Joe Piscopo?!”