The Kids are Alright
Children Quote of the Day: “Children see magic because they look for it.” – Christopher Moore
Did Taco Bell raid my high school lunch bag? They’ve gone from Dorito shells to this.
Interest rates on a 30-yr fixed have climbed to the mid-to-upper 4s. That’s – as my brother likes to remind me – double what my GPA was in college. My low GPA was due to a class I failed twice – Tools of Economic Analysis – which Interestingly enough holds all the answers as to why rates have gone up so quickly.
In a nutshell, the Fed has been buying mortgage-backed securities for the last three years to help keep rates artificially low, which in turn would help stimulate our sluggish economy. In early May Fed Chief Bernanke dropped hints about how they are almost done with their spending spree ($86 billion a month!). This announcement caused the markets to freak out and rates to quickly climb up.
But rates are still historically low, Mortgage Fans, so there is no reason to freak out. A 30-yr fixed today remains in the mid-4s with ARM rates about a point lower. Don’t forget to remember – for all purchase and refinance loans over $240k I will waive all lender fees – a $1,295 savings!
The LIBOR (London Interbank Offered Rate) that most ARM rates are based off of is losing the ‘L’ as this will be moved to the New York Stock Exchange due to the rate-rigging scandal over the past few years. There is no word as to whether it will be called the NYSEOR. As long as it’s not the Bank’s Index is an Excellent Byproduct of Euro Rates (BIEBER) I’m sure everything will be fine.
Children Quote of the Day 2:“Do you think Bradley Cooper will call his kids Mini Coopers ‘cause I hope so.” – Sammy Rhodes (@prodigalsam)
Timeout for Trivia: Congrats to those who guessed Tobey Maguire a few weeks back. Want to be entered into a drawing to win a Thomas Jefferson bobblehead? Simply email me the answer to this week’s “Who Am I?” question. Good luck: “It was on this day in 1984 that my band and I made big news when we sung the National Anthem at the MLB All-Star game in San Francisco. And why not, the title of our biggest album will hint that we are sports fans. In 1985 I sued Ray Parker, Jr. over similarities between hisGhostbusters theme song and my song about drugs. And for the record, it’s hip not to do drugs.”