No Pain No Gain

Suffering Quote of the Day: “Life is full of misery, loneliness, and suffering – and it’s all over much too soon.” – Woody Allen

What do interest rates have in common with the Memorial Day binge-eating hangover I am suffering from? They both make me sick to my stomach. Rates rose over .375% last week – the worst week for rates in almost two years. Why did they climb? The better the stock market goes the worse it is for rates. On top of that it was a light week for economic data. This week, however, we’ve got lots of reports coming out that can shake rates in either direction.

Wuss’up This Week: Today at 12:15 we’ve got the 5-year Treasury Note Auction. A strong demand for these will bring rates down (and they make a great graduation gift). Tomorrow’s reports: Weekly Jobless Claims and a 7-year Treasury Note Auction (these also make great gifts). Friday’s reports: PCE Core Inflation (expected up 0.1%) and Consumer Sentiment (expected at 79.8) – a weakness in either of these reports will help rates.

As it stands now the 30-year fixed rates are in the high-3s/low 4s, with ARM rates about a point lower. And yes, thanks for asking – for any purchase or refinance loans over $240k I will waive all lender fees, which is a $1,295 savings!!

Did’ja know…? In the first quarter of 2013, total household indebtedness fell to $11.2 trillion. Seems like a lot? Well, that’s way down from the peak of $12.7 trillion in late 2008. How it adds up: Mortgage debt now stands at $7.9 trillion, home equity loans are at $522 billion, student loans are at $986 billion, auto and credit card loans total $1.8 trillion, and my Direct TV bill stands at $186 a month (yes, my love of TV will one day prevent me from paying my kids’ college tuition).

Here’s a great skywriting prank.

Suffering Quote of the Day 2: “When they read side effects in prescription drug commercials they should show the actors actually suffering from them instead of canoeing.” – Horton Atonto (@crushingbort)

Timeout for Trivia: Congrats to those who guessed Sinead O’Connor last week. Want to be entered into a drawing to win a turtle catching Frisbee T-shirt? Simply email me the answer to this week’s “Who Am I?” question. Good luck: “In two days I turn 52. You might’ve found me in the 1980s falling for my son (not as gross as it sounds; think time travel) or playing sax for a guy whose pass interference penalty didn’t really blow that game. In 1987 I starred in a John Hughes movie as the most popular girl in high school who goes out on a date with a working class misfit (who coincidentally was chosen for the lead role as my son in that time travel movie but was fired halfway thru filming it).”


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