Mr Mortgage: Mortgage Rates Soar

[jficquette]

[quote=TheBreeze]By the way, I think these higher rates show that there is no way government can stop a deflationary spiral. The more they muck with the market, the higher rates are going to go and the less credit that will ultimately be available. Less credit=deflation.

Rich would argue that the government can just cut everyone a check for $10 million, but there would be a massive taxpayer revolt if that happened. Household wealth has decreased $20 trillion in two years ( http://www.atimes.com/atimes/Global_Economy/KA23Dj07.html ) and there is starting to be some serious resistance to the paltry-in-comparison $800 billion stimulus that would be spent over the next two years.

There will also probably be some additional TARPs and other things that may amount to two or three trillion overall, but there is no way that the government is going to be able to keep up with the $10 trillion/year decline in household wealth.

Deflation here we come. I for one look forward to more reasonably priced goods and services. [/quote]

I agree. You know our economy has always been about 70% consumer driven as opposed to say, Japan where the consumer is a much lower % of gdp.

If consumers start to only spend on what they only have to have to live then we are talking big time deflation with grueling consquences for the next generation or so.

Something has to give this time. This is the worst mess the liberals have created by far.(g)

John

[an]

[quote=capeman]
Mr. Mortgage is a 20+ year vet in the home loan arena and he’s been pretty on it with his data and predictions.

I’d bet the aimloan.com advertisement is over-promising and nobody would be able to get those rates if applying. I could be wrong but the rates are moving so fast that one would only have a slim chance of catching them at advertised lows. [/quote]
Wrong. I was about to use them a while back. They’re not a bait and switch. I was about to lock in w/ them, then I found Wachovia who would even priced match aimloan.com rate and beat them too. So, as long as you get a written GFE, a lot of the banks will try and beat that rate. Some can and some can’t.

[an]

[quote=capeman]
Mr. Mortgage is a 20+ year vet in the home loan arena and he’s been pretty on it with his data and predictions.

I’d bet the aimloan.com advertisement is over-promising and nobody would be able to get those rates if applying. I could be wrong but the rates are moving so fast that one would only have a slim chance of catching them at advertised lows. [/quote]
Wrong. I was about to use them a while back. They’re not a bait and switch. I was about to lock in w/ them, then I found Wachovia who would even priced match aimloan.com rate and beat them too. So, as long as you get a written GFE, a lot of the banks will try and beat that rate. Some can and some can’t.

[an]

[quote=capeman]
Mr. Mortgage is a 20+ year vet in the home loan arena and he’s been pretty on it with his data and predictions.

I’d bet the aimloan.com advertisement is over-promising and nobody would be able to get those rates if applying. I could be wrong but the rates are moving so fast that one would only have a slim chance of catching them at advertised lows. [/quote]
Wrong. I was about to use them a while back. They’re not a bait and switch. I was about to lock in w/ them, then I found Wachovia who would even priced match aimloan.com rate and beat them too. So, as long as you get a written GFE, a lot of the banks will try and beat that rate. Some can and some can’t.

[an]

[quote=capeman]
Mr. Mortgage is a 20+ year vet in the home loan arena and he’s been pretty on it with his data and predictions.

I’d bet the aimloan.com advertisement is over-promising and nobody would be able to get those rates if applying. I could be wrong but the rates are moving so fast that one would only have a slim chance of catching them at advertised lows. [/quote]
Wrong. I was about to use them a while back. They’re not a bait and switch. I was about to lock in w/ them, then I found Wachovia who would even priced match aimloan.com rate and beat them too. So, as long as you get a written GFE, a lot of the banks will try and beat that rate. Some can and some can’t.

[an]

[quote=capeman]
Mr. Mortgage is a 20+ year vet in the home loan arena and he’s been pretty on it with his data and predictions.

I’d bet the aimloan.com advertisement is over-promising and nobody would be able to get those rates if applying. I could be wrong but the rates are moving so fast that one would only have a slim chance of catching them at advertised lows. [/quote]
Wrong. I was about to use them a while back. They’re not a bait and switch. I was about to lock in w/ them, then I found Wachovia who would even priced match aimloan.com rate and beat them too. So, as long as you get a written GFE, a lot of the banks will try and beat that rate. Some can and some can’t.

[cr]

Deflation! Deflation! Read all about it!

And that’s all I do is read about it, but I’m not seeing it. My favorite reasonly priced restaurant: just raised prices. My pastime: just got more expensive. My sons choice meal: up 10%. Even gasoline is going back up.

I’ve seen material costs fall in my industry, but prices haven’t followed yet and retailers won’t drop their prices accordingly unless they’re going out of business, and that will only be after artifically raising them so what is actually 10% off looks like 50% off.

The only thing going down is housing. Higher mortgage rates (due to cramdowns?) will push housing prices down further, but the continued failure of banks (due to cramdowns?) will lead to more printing.

It’s a vicious cycle yes, and eventually our fearless leaders will realize they can’t stop home prices from falling and raise rates.

[cr]

Deflation! Deflation! Read all about it!

And that’s all I do is read about it, but I’m not seeing it. My favorite reasonly priced restaurant: just raised prices. My pastime: just got more expensive. My sons choice meal: up 10%. Even gasoline is going back up.

I’ve seen material costs fall in my industry, but prices haven’t followed yet and retailers won’t drop their prices accordingly unless they’re going out of business, and that will only be after artifically raising them so what is actually 10% off looks like 50% off.

The only thing going down is housing. Higher mortgage rates (due to cramdowns?) will push housing prices down further, but the continued failure of banks (due to cramdowns?) will lead to more printing.

It’s a vicious cycle yes, and eventually our fearless leaders will realize they can’t stop home prices from falling and raise rates.

[cr]

Deflation! Deflation! Read all about it!

And that’s all I do is read about it, but I’m not seeing it. My favorite reasonly priced restaurant: just raised prices. My pastime: just got more expensive. My sons choice meal: up 10%. Even gasoline is going back up.

I’ve seen material costs fall in my industry, but prices haven’t followed yet and retailers won’t drop their prices accordingly unless they’re going out of business, and that will only be after artifically raising them so what is actually 10% off looks like 50% off.

The only thing going down is housing. Higher mortgage rates (due to cramdowns?) will push housing prices down further, but the continued failure of banks (due to cramdowns?) will lead to more printing.

It’s a vicious cycle yes, and eventually our fearless leaders will realize they can’t stop home prices from falling and raise rates.

[cr]

Deflation! Deflation! Read all about it!

And that’s all I do is read about it, but I’m not seeing it. My favorite reasonly priced restaurant: just raised prices. My pastime: just got more expensive. My sons choice meal: up 10%. Even gasoline is going back up.

I’ve seen material costs fall in my industry, but prices haven’t followed yet and retailers won’t drop their prices accordingly unless they’re going out of business, and that will only be after artifically raising them so what is actually 10% off looks like 50% off.

The only thing going down is housing. Higher mortgage rates (due to cramdowns?) will push housing prices down further, but the continued failure of banks (due to cramdowns?) will lead to more printing.

It’s a vicious cycle yes, and eventually our fearless leaders will realize they can’t stop home prices from falling and raise rates.

[cr]

Deflation! Deflation! Read all about it!

And that’s all I do is read about it, but I’m not seeing it. My favorite reasonly priced restaurant: just raised prices. My pastime: just got more expensive. My sons choice meal: up 10%. Even gasoline is going back up.

I’ve seen material costs fall in my industry, but prices haven’t followed yet and retailers won’t drop their prices accordingly unless they’re going out of business, and that will only be after artifically raising them so what is actually 10% off looks like 50% off.

The only thing going down is housing. Higher mortgage rates (due to cramdowns?) will push housing prices down further, but the continued failure of banks (due to cramdowns?) will lead to more printing.

It’s a vicious cycle yes, and eventually our fearless leaders will realize they can’t stop home prices from falling and raise rates.

[afx114]

My bags of Doritos are experiencing deflation:

PepsiCo recently reduced the amount of Tropicana orange juice you get in a large container by 7%, from 96 ounces to 89 ounces. Bags of Doritos, also made by PepsiCo, have been trimmed by as much as 2 ounces.

Full Article

So even though the bags of Doritos are deflating, the prices are staying the same, which means they are actually inflating! Whoa…

[afx114]

My bags of Doritos are experiencing deflation:

PepsiCo recently reduced the amount of Tropicana orange juice you get in a large container by 7%, from 96 ounces to 89 ounces. Bags of Doritos, also made by PepsiCo, have been trimmed by as much as 2 ounces.

Full Article

So even though the bags of Doritos are deflating, the prices are staying the same, which means they are actually inflating! Whoa…

[afx114]

My bags of Doritos are experiencing deflation:

PepsiCo recently reduced the amount of Tropicana orange juice you get in a large container by 7%, from 96 ounces to 89 ounces. Bags of Doritos, also made by PepsiCo, have been trimmed by as much as 2 ounces.

Full Article

So even though the bags of Doritos are deflating, the prices are staying the same, which means they are actually inflating! Whoa…

[afx114]

My bags of Doritos are experiencing deflation:

PepsiCo recently reduced the amount of Tropicana orange juice you get in a large container by 7%, from 96 ounces to 89 ounces. Bags of Doritos, also made by PepsiCo, have been trimmed by as much as 2 ounces.

Full Article

So even though the bags of Doritos are deflating, the prices are staying the same, which means they are actually inflating! Whoa…

[Author]

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