How Ding Dongs control your rate fate…
Sept 15, 2010
Clothing Quote of the Day: “People seldom notice old clothes if you wear a big smile.” – Lee Mildon.
Interest Rate Update: I’ve been dieting this whole year, and as my weight has gone down so have the interest rates. But last week I crashed on Wednesday night and ate 3 Hostess Ding Dongs. This was followed by rates going up on Thursday and Friday. Coincidence? I don’t know, but this Thursday I plan on eating a big bowl of Lucky Charms for dinner just to test it out. So… you may want to lock in on rates the next two days. As of now rates are still in the low to mid 4s on 30-year fixed loans, and about a point less on ARMS. Please remember to tell your friends, family, coworkers, and pets that for any purchase or refinance over 240k I will waive all lender fees!
Wuss’up This Week: Three reports come out this week that measure inflationary pressures (Capacity Utilization today, Producer Price Index tomorrow, and Consumer Price Index on Friday). Why do we care about these? Inflation is bad for rates, and when it kicks in rates will start to go up. My friend and mentor Ben Bernanke printed up a boatload of money over the past two years and eventually that will catch up to us and force inflation. How bad can it get? No one really knows, but hopefully not as bad as back in the horrible year of 1982 when I failed my driver’s license test, got blown off by Molly Freeland, and the 30yr fixed was at 17.50%.
Clothing Quote of the Day 2: “I was at a party and saw a guy with a leather jacket, and I thought, ‘That’s cool.’ Then I saw a guy with a leather vest and I thought, ‘That’s not cool.’ It was then I realized what coolness is all about… leather sleeves.” – Demetri Martin (comedian).
Timeout for Trivia: Congrats to all of you who correctly guessed Mr. Mom Michael Keaton as last week’s answer. Want to be entered into a drawing to win really cool stuff? Simply email me the answer to this week’s Who Are We? question. Good luck: “It was on this date in 1983 our song hit # 1 in the UK. It wouldn’t hit # 1 in America until 1984. Our lead singer has explained that the song is about the bad results that will happen to you if you decide to just blend in and not speak up for what you think is right. Out lead singer is the only one you will know by name. His first autobiography Take It Like A Man was a clever title but don’t pick on him because he’s different. For him, every day is like survival. You’re his lover, not his rival. The name of our group is ___________.”