Is QE2 DOA?
Aging Quote of the Day: “Beautiful young people are accidents of nature, but beautiful old people are works of art.” – Eleanor Roosevelt
What Does Jersey Shore have in Common With Interest Rates? We’ve got a Situation going on and it ain’t good. The Fed announced for QE2 that it would buy $600 billion worth of bonds to help keep rates down. To do this they have to print money which causes inflation and devalues the dollar. The foreign investors who we rely on to buy the bonds are shying away since the value of the dollar is dropping. I like the Fed’s plan but so far it’s an expensive party he’s throwing and nobody is showing up.
And Where Are Rates? For a 30yr fixed we’re starting to see a shift from the low 4s to the mid 4s. ARMS are about a point lower. Please let your family, friends, coworkers, and pets know that for any purchase or refinance loans over 240k I will waive all lender fees ($1,200 value!).
Wuss’up This Week: The biggest report this week is today’s CPI (Consumer Price Index) which is a measure of inflation of the consumer level. Tomorrow is the LED (Leading Economic Indicators) which is an indication of future economic activity; a smaller than expected increase may lead to lower rates. (side note: I wish they had this report for the zoos in eastern Pennsylvania because then it would be called the LED ZEP; and how cool would that be..)
Aging Quote of the Day 2: “If you think Mick Jagger will still be out there trying to be a rock star at age fifty then you are sadly, sadly mistaken.” – Dennis Hope (Jimmy Fallon), Almost Famous (2000).
Timeout for Trivia: Congrats to all of you who answered Jim Morrison last week. Want to be entered into a drawing to win probably the best prize I’ve ever given out in the two year blog history: A Mr. Potato Head (slightly used). Simply email me the answer to this week’s Who Am I? question. Good luck: “I’m an actor, director, and producer who turns 66 today. In 2006 I began a partnership with Morgan Freeman’s company to produce documentaries. I was inspired by his narration in the ’05 movie March of the Penguins. But really, wouldn’t it have made sense for me to narrate that one? Speaking of partnerships, I’ve been married to my actress wife since 1982 – how’s that for longevity in a Hollywood marriage?! Hooray for me, but really the cheers go to my wife.”
That’s Not Junk Mail: so don’t throw it out! It’s the latest Hey Mortgage Fans newsletter which explains the 9 biggest myths in the mortgage industry. I am mailing them out this week.
Timeout for Turkey: Barry’s Blog will take off next Wednesday in preparation for Thanksgiving on Thursday (hey, it’s never too early to prep for the football games and to figure out which pair of sweats I will wear to dinner). I want to wish everyone a Happy Thanksgiving. And remember – every family is dysfunctional – not just yours.