Are Mortgage Rates Going Up?

[Huckleberry]

Freddie Mac said Thursday the 30-year fixed-rate mortgage average hit an 11-week high on inflation jitters. The 30-year fixed-rate mortgage averaged 6.08% with an average 0.6 point for the week ending May 29. Last week, the average was 5.98%, and last year at this time it was 6.42%.

So, what do all the piggs think will happen to 30 yr. mortgage rates over the next 6, 12, 18 and 24 months?

I personally believe inflation is heating up not only in the US but in Europe as well, which will drive the 10yr Treasury note and LIBOR up.

Considering this, my thought is that 30 yr. mortgages will be around 6.5% by the end of 08.

Any thoughts?

Let’s please try basing the analysis on facts we know about the economy and data figures coming from financial markets…

[JWM in SD]

Here’s your answer.

Fisher Warns Of Rate Hikes

Fed Governor Fisher is warning Rate hikes could come sooner vs later.

The Federal Reserve would likely increase interest rates “sooner rather than later” if inflation worsens, even if the U.S. economy remains weak, Dallas Federal Reserve Bank President Richard Fisher said on Wednesday.

“If inflationary developments and, more important, inflation expectations, continue to worsen, I would expect a change of course in monetary policy to occur sooner rather than later, even in the face of an anemic economic scenario,” Fisher said.

Fisher is one of the Fed’s leading policy hawks, urging the central bank to focus more on the need to quell inflation, which he termed “a sinister beast.” He has tallied three straight dissents against the Federal Open Market Committee’s moves to lower benchmark lending rates.

“Growth cannot be sustained if markets are undermined by inflation,” Fisher said. “Stable prices go hand in hand with achieving sustainable economic growth.”

[JWM in SD]

Here’s your answer.

Fisher Warns Of Rate Hikes

Fed Governor Fisher is warning Rate hikes could come sooner vs later.

The Federal Reserve would likely increase interest rates “sooner rather than later” if inflation worsens, even if the U.S. economy remains weak, Dallas Federal Reserve Bank President Richard Fisher said on Wednesday.

“If inflationary developments and, more important, inflation expectations, continue to worsen, I would expect a change of course in monetary policy to occur sooner rather than later, even in the face of an anemic economic scenario,” Fisher said.

Fisher is one of the Fed’s leading policy hawks, urging the central bank to focus more on the need to quell inflation, which he termed “a sinister beast.” He has tallied three straight dissents against the Federal Open Market Committee’s moves to lower benchmark lending rates.

“Growth cannot be sustained if markets are undermined by inflation,” Fisher said. “Stable prices go hand in hand with achieving sustainable economic growth.”

[JWM in SD]

Here’s your answer.

Fisher Warns Of Rate Hikes

Fed Governor Fisher is warning Rate hikes could come sooner vs later.

The Federal Reserve would likely increase interest rates “sooner rather than later” if inflation worsens, even if the U.S. economy remains weak, Dallas Federal Reserve Bank President Richard Fisher said on Wednesday.

“If inflationary developments and, more important, inflation expectations, continue to worsen, I would expect a change of course in monetary policy to occur sooner rather than later, even in the face of an anemic economic scenario,” Fisher said.

Fisher is one of the Fed’s leading policy hawks, urging the central bank to focus more on the need to quell inflation, which he termed “a sinister beast.” He has tallied three straight dissents against the Federal Open Market Committee’s moves to lower benchmark lending rates.

“Growth cannot be sustained if markets are undermined by inflation,” Fisher said. “Stable prices go hand in hand with achieving sustainable economic growth.”

[JWM in SD]

Here’s your answer.

Fisher Warns Of Rate Hikes

Fed Governor Fisher is warning Rate hikes could come sooner vs later.

The Federal Reserve would likely increase interest rates “sooner rather than later” if inflation worsens, even if the U.S. economy remains weak, Dallas Federal Reserve Bank President Richard Fisher said on Wednesday.

“If inflationary developments and, more important, inflation expectations, continue to worsen, I would expect a change of course in monetary policy to occur sooner rather than later, even in the face of an anemic economic scenario,” Fisher said.

Fisher is one of the Fed’s leading policy hawks, urging the central bank to focus more on the need to quell inflation, which he termed “a sinister beast.” He has tallied three straight dissents against the Federal Open Market Committee’s moves to lower benchmark lending rates.

“Growth cannot be sustained if markets are undermined by inflation,” Fisher said. “Stable prices go hand in hand with achieving sustainable economic growth.”

[JWM in SD]

Here’s your answer.

Fisher Warns Of Rate Hikes

Fed Governor Fisher is warning Rate hikes could come sooner vs later.

The Federal Reserve would likely increase interest rates “sooner rather than later” if inflation worsens, even if the U.S. economy remains weak, Dallas Federal Reserve Bank President Richard Fisher said on Wednesday.

“If inflationary developments and, more important, inflation expectations, continue to worsen, I would expect a change of course in monetary policy to occur sooner rather than later, even in the face of an anemic economic scenario,” Fisher said.

Fisher is one of the Fed’s leading policy hawks, urging the central bank to focus more on the need to quell inflation, which he termed “a sinister beast.” He has tallied three straight dissents against the Federal Open Market Committee’s moves to lower benchmark lending rates.

“Growth cannot be sustained if markets are undermined by inflation,” Fisher said. “Stable prices go hand in hand with achieving sustainable economic growth.”

[Huckleberry]

This could end up being the DOUBLE-WHAMMY that resets the SD real estate market back to 1998 prices, in all asset classes from high price to low.

Housing prices declining at such an alarming rate people are reluctant to buy. Then on top of that, even if they did, mortgage rates too high and credit too tight…

Just wait until the Alt-A and pay option ARM’s start resetting ’09-11. Even mortgages in the upper rages (over $600k) are going to be effected, especially if jumbo rates stay high.

Not looking good…

[Huckleberry]

This could end up being the DOUBLE-WHAMMY that resets the SD real estate market back to 1998 prices, in all asset classes from high price to low.

Housing prices declining at such an alarming rate people are reluctant to buy. Then on top of that, even if they did, mortgage rates too high and credit too tight…

Just wait until the Alt-A and pay option ARM’s start resetting ’09-11. Even mortgages in the upper rages (over $600k) are going to be effected, especially if jumbo rates stay high.

Not looking good…

[Huckleberry]

This could end up being the DOUBLE-WHAMMY that resets the SD real estate market back to 1998 prices, in all asset classes from high price to low.

Housing prices declining at such an alarming rate people are reluctant to buy. Then on top of that, even if they did, mortgage rates too high and credit too tight…

Just wait until the Alt-A and pay option ARM’s start resetting ’09-11. Even mortgages in the upper rages (over $600k) are going to be effected, especially if jumbo rates stay high.

Not looking good…

[Huckleberry]

This could end up being the DOUBLE-WHAMMY that resets the SD real estate market back to 1998 prices, in all asset classes from high price to low.

Housing prices declining at such an alarming rate people are reluctant to buy. Then on top of that, even if they did, mortgage rates too high and credit too tight…

Just wait until the Alt-A and pay option ARM’s start resetting ’09-11. Even mortgages in the upper rages (over $600k) are going to be effected, especially if jumbo rates stay high.

Not looking good…

[Huckleberry]

This could end up being the DOUBLE-WHAMMY that resets the SD real estate market back to 1998 prices, in all asset classes from high price to low.

Housing prices declining at such an alarming rate people are reluctant to buy. Then on top of that, even if they did, mortgage rates too high and credit too tight…

Just wait until the Alt-A and pay option ARM’s start resetting ’09-11. Even mortgages in the upper rages (over $600k) are going to be effected, especially if jumbo rates stay high.

Not looking good…

[jmrrobbie1]

JMR

If you want a purely analytical & factual based “view” on this look at Bernstein’s site …

http://www.efficientfrontier.com/

A self taught finance guy who really cuts to core analysis. Take at look at his March synopsis … if you have read any of his books you will quickly understand the dire possibilities of our current market environment after reading his March note – “The Dark Side of the Moon”. By the way – his review & history of “bubbles” is great reading too.

My applause too for Pigg’s site … one of the only other sites I follow on a regular basis.

[jmrrobbie1]

JMR

If you want a purely analytical & factual based “view” on this look at Bernstein’s site …

http://www.efficientfrontier.com/

A self taught finance guy who really cuts to core analysis. Take at look at his March synopsis … if you have read any of his books you will quickly understand the dire possibilities of our current market environment after reading his March note – “The Dark Side of the Moon”. By the way – his review & history of “bubbles” is great reading too.

My applause too for Pigg’s site … one of the only other sites I follow on a regular basis.

[jmrrobbie1]

JMR

If you want a purely analytical & factual based “view” on this look at Bernstein’s site …

http://www.efficientfrontier.com/

A self taught finance guy who really cuts to core analysis. Take at look at his March synopsis … if you have read any of his books you will quickly understand the dire possibilities of our current market environment after reading his March note – “The Dark Side of the Moon”. By the way – his review & history of “bubbles” is great reading too.

My applause too for Pigg’s site … one of the only other sites I follow on a regular basis.

[jmrrobbie1]

JMR

If you want a purely analytical & factual based “view” on this look at Bernstein’s site …

http://www.efficientfrontier.com/

A self taught finance guy who really cuts to core analysis. Take at look at his March synopsis … if you have read any of his books you will quickly understand the dire possibilities of our current market environment after reading his March note – “The Dark Side of the Moon”. By the way – his review & history of “bubbles” is great reading too.

My applause too for Pigg’s site … one of the only other sites I follow on a regular basis.

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