GRMA #33663/NMLS#: 870421 / GRMA 24310 / NMLS 222425
Toggle Navigation
Menu
Home
Contact Us
Staff Profiles
Real Estate Glossary
Metro Atlanta Experts
Buyer Information
Your Down Payment
Why an inspection?
Buydown Options
Should you buy points?
Closing Costs
Financing Closing Costs
How Much You Can Afford
The Loan Process
Get A New Loan Quote
Broker vs. Loan Officer
Are You Pre-Approved?
Get Your Loan Faster!
Paying Your Loan Early
Your FICO score
What is a credit score?
Improve Your Credit Score
Getting Your Credit Report
Disputing Credit Reports
Mistakes on Your Report
Bankruptcy
Rates and A.P.R.
Daily Rate Lock Advisory
Rate Lock Periods
Fixed Vs. Adjustable
Refinancing Options
When to Refinance
Mortgage FAQ's
Second Mortgages
Mortgage Calculators
Bi-Weekly Mortgage
Insurance
What is PMI?
Eliminating PMI
Shopping Settlement Costs
My Mortgage Blog
Mortgage Market Update 02-17-2012
February 20th, 2012 12:27 PM by Nick Rapplean
Gradually improving US economic data and a Greek deal of some sort have relieved immediate financial fears, and so bond and mortgage rates have risen.
The rate increase is proportional to the relief. 10-year T-notes have moved from 1.92% to 2.02%, and mortgages from just under 4.00% to just under 4.125%, roughly like your kid's fever dropping from 105 to 104.5.
However, the kid here is in a lot better shape than the kid in Europe. The most reassuring news here is the up-trend in the small business survey by the NFIB. Although its overall optimism is little better than the bottom of recessions going back 25 years, it has been improving each month since August, and only two months since 2007 have had better readings. The weakest internal component has been sales, now the worry fading fastest.
Another legitimate breakthrough: weekly claims for unemployment insurance have dropped again, to 348,000 last week. Wobbling near 350,000 in the last couple of months has been a straight-line decline from the 400,000+ range of the last two years, and is only about 25,000 weekly above what anyone would consider normal. However, everything about this cycle is so abnormal that nobody knows if normalized layoffs will translate in to normal hiring.
More good news: inflation is not a problem. CPI arrived for January +.2% both overall and core, and in the last year overall +2.3% core and +2.9% overall. The numbers don’t seem to do much for inflation anxiety, most of which is based on conspiracy theories of one kind or another.
With us always is the cooked-books crowd. Nevermind the impossible complexity of getting the dozens of inflation reports from Bureau of Labor Statistics, Commerce Department, and Fed all to tell the same false story. People who believe in rigged reports also invariably believe that government is incompetent; if so, how is a pack of fools to run such an elegant conspiracy?
A branch of this bunch objects to updating the "market basket" of goods and services to reflect current consumption. This subset also loves the horror stories of atypical consumers: a family putting a kid through college feels price pressure that a retired couple does not. There is no arguing with those who want the world never to change. Today, keeping a horse in New York City is unimaginably expensive; 100 years ago in that city a horse was the common possession of a lower-class merchant.
A serious concern, historically, is the tendency of government to print its way out of debt trouble -- especially when so many authoritative voices (responsible and not) say that the Fed is "printing money" right now.
Of all the things that I discuss with my ceiling at 3:00AM, US money-printing is the least. For three reasons. The Fed is printing money to replace money that frightened banks and investors are withdrawing and burying in their back yards. If new money is in balance with money withdrawn, no inflation; the new money prevents deflation.
Second, take on faith that the Fed is deadly serious about a 2% target for core inflation. As an institution it saw the 1960s-1980s consequences of "a little inflation," and it will not repeat -- no matter what Left-side economists propose today.
Third… the third reason is so powerful that we will wish it were not there. When the Fed tolerated a little inflation, and it went from 2% to 12%, there was so little debt in the world that its owners could not protect themselves. Too few "bond vigilantes" to form a posse. Today there are mountains of IOUs all over the world. Any effort by any government to inflate its way out of debt will be met by massive selling, and the instantaneous and pre-emptive rocket in rates will demolish the offending economy.
Vigilantes grown to army-size now cause the austerity predicament. Only Greece, Ireland, Portugal, and the UK are in its grip. Italy, Spain, and France have promised austerity but not begun. In the US we have not even promised.
Posted in:
General
Posted by Nick Rapplean on February 20th, 2012 12:27 PM
Post a Comment
Subscribe to this blog
Recent Posts:
Mortgage market update 09-22-2015
Mortgage Market Update 06-13-2015
Mortgage Market Update 06-01-2015
Mortgage Market Update 05-26-2015
Mortgage Market Update 04-29-2015
Mortgage Market Update 03-25-2015
Mortgage Market Update 01-20-2015
Mortgage Market Update 01-12-2015
Federal Reserve Press Release
Mortgage Market Update 12-16-2014
Archives:
June 2010
Week in Review
Weekly Talking Points
Mortgage Week in Review
Rates headed even lower!
Where will rates go?
November 2014
Mortgage Market Update 11-05-2014
October 2014
Mortgage Market Update 10-27-2014
Mortgage Market Update 10-15-2014
Mortgage Market Update 10-08-2014
Mortgage Market Update 10-01-2014
August 2014
Mortgage Market Update 08-26-2014
Mortgage Market Update 08-06-2014
July 2014
Mortgage Market Update 07-29-2014
Mortgage Market Update 07-09-2014
June 2014
Mortgage Market Update 06-11-2014
Mortgage Market Update 06-06-2014
May 2014
Mortgage Market Update 05-27-2014
Mortgage Market Update 05-15-2014
April 2014
Mortgage Market Update 04-25-2014
March 2014
Mortgage Market Update 03-25-2014
Mortgage market Update 03-06-2014
February 2014
Mortgage Market Update 02-27-2014
New Home Construction
Mortgage Market Update 02-18-2014
Mortgage Market Update 02-06-2014
January 2014
Mortgage Market Update 01-30-2014
Mortgage Market Update 01-20-2014
Mortgage Market Update 01-15-2014
Mortgage Market Update 01-13-2014
Weekly Mortgage Update 01-08-2014
December 2013
Mortgage Market Update 12-27-2013
Mortgage Market Update 12-18-2013
Mortgage Market Update 12-16-2013
Mortgage Market Update 12-11-2013
Mortgage Market Update 12-02-2013
November 2013
Mortgage Market Update 11-18-2013
Mortgage Market Update 11-11-2013
Mortgage Market Update 11-05-2013
October 2013
Mortgage Market Update 10-29-2013
Mortgage Market Update 10-24-2013
Mortgage Market Update 10-09-2013
Mortgage Market Update 10-08-2013
Mortgage Market Update 10-02-2013
September 2013
Mortgage Market Update 09-25-2013
Mortgage Market Update 09-18-2013
Mortgage Market Update 09-11-2013
Mortgage News 09-04-2013
Mortgage Market Update 09-03-2013
August 2013
Mortgage Market Update 08-26-2013
Mortgage Market Update 08-21-2013
July 2013
Mortgage Market Update 07-29-213
Mortgage Market Update 07-08-2013
June 2013
Mortgage Market Update 06-25-2013
Mortgage Market Update 06-07-2013
Mortgage Market Update 06-03-2013
May 2013
Mortgage Market Update 05-13-2013
Mortgage Market Update 05-06-2013
April 2013
Mortgage Market Update 04-22-2013
Mortgage Market Update 04-08/2013
March 2013
Mortgage Market Update 03-27-2013
February 2013
Mortgage Market Update 02-27-2013
Mortgage Market Update 02-22-13
Mortgage Market Update 02-19-2013
Mortgage Market Update 02-04-2013
January 2013
Mortgage Market Update 01-24-2013
Mortgage Market Update 01-11-2013
Mortgage Market Update 01-02-2013
December 2012
Mortgage Market Update 12-19-2012
Mortgage Market Update 12-12-12
November 2012
Mortgage Market Update 11-29-2012
Weekly Mortgage Update 11-15-2012
October 2012
Weekly Mortgage Update 10-31-2012
Mortgage Market Update 10-17-2012
Mortgage Market Update 10-01-2012
September 2012
Mortgage Market Update 09-17-2012
Mortgage Market Update 09-11-2012
Mortgage Market Update 09-05-2012
August 2012
Mortgage Markete Update 08-29-2012
Weekly Mortgage Update 08-23-2012
Mortgage Market Update 08-13-2012
July 2012
Mortgage Market Update 07-30-20012
Mortgage Market Update 07-10-2012
Mortgage Market Update 07-02-2012
June 2012
Mortgage Market Update 06-14-2012
Mortgage Market Update 06-11-2012
May 2012
Mortgage Market Update 05-29-2012
Mortgage Market Update 05-24-2012
Mortgage Market Update 05-07-2012
April 2012
Mortgage Market Update 04-25-2012
Weekly Mortgage Update 04-18-2012
Mortgage Market Update 04/13/2012
Mortgage Market Update 04-04-2012
March 2012
Mortgage Market Update 03-30-2012
Mortgage Market Update 03-23-2012
Mortgage Market Update 03-20-2012
Mortgage Market Update 03-16-2012
Mortgage Talking Points 03-13-2012
Mortgage Market Update 03-12-2012
Weekly Mortgage Market Update
Mortgage Market Week in Review 03-02-2012
February 2012
Mortgage Market Update 02-28-2012
Mortgage Week in Review 02-24-2012
Weekly Mortgage Talking Points
Mortgage Market Update 02-17-2012
Mortgage Market Update 02-10-2012
Mortgage Market Update 02-03-2012
January 2012
Mortgage Market Update 01-24-2012
Week In Review 1-13-2012
Weekly Market Update 01-06-2012
December 2011
Mortgage Market Update 12-16-2011
Housing Market Update 12-14-2011
Housing Market Update 12-05-2011
Housing Market Update 12/01/2011
November 2011
Mortgage Week in Review 11-18-2011
Mortgage Market Update 11-14-11
Mortgage Week in Review 11-11-11
Weekly Mortgage Update 11-07-2011
October 2011
Mortgage Week in Review 10-28-2011
Mortgage Market Update 10-18-2011
Mortgage Update Week ending 10-14-2011
September 2011
Mortgage Week in Review 09-30-2011
Weekly Mortgage Market Update 09-19-2011
Mortgage Market Update 09/12/2011
August 2011
Mortgage Market Update 08-29-2011
Mortgage Market Weekly Review 08-19-11
Economic Update 08-15-2011
Credit Down Grade
Mortgage Market Update 08/01/2011
July 2011
Mortgage Market Update 7/22/11
Mortgage market update for week ending 7-15
Weekly Update
June 2011
Weekly mortgage update for week ending 06/24/2011
Mortgage Market Update week ending 06-24
May 2011
Mortgage Market Update for Week Ending 06-03
Weekly Financial Update
April 2011
Economic Update 04-29
Weekly Mortgage Market Update 04-22
Weekly Mortgage Update 04-15
Mortgage Week in Review 04-08-2011
March 2011
Economic Update
Mortgage Market Update March 25th
Weekly Review
Weekly Market Info
Mortgage Market Update
Weekly Info
February 2011
Weekly Mortgage Rate Info
Weekly Mortgage Rate Update
January 2011
Mortgage Weekly Update
Mortgage Rate Update
Mortgage Market in Review
Mortgage rate info for this week!
2011 Mortgage Update
December 2010
Weekly Market Update
November 2010
Mortgage Rates: The Week Ahead
October 2010
This Week's Info
August 2010
Why Bonds?
The Mortgage Market Week in Review
Morgage Market Update
Weekly Mortgage Update
What happened to ECON101?
July 2010
This Week in Review
Weekly Update
Mortgage Market Weekly Review
November 2014 (1)
October 2014 (4)
August 2014 (2)
July 2014 (2)
June 2014 (2)
May 2014 (2)
April 2014 (1)
March 2014 (2)
February 2014 (4)
January 2014 (5)
December 2013 (5)
November 2013 (3)
October 2013 (5)
September 2013 (5)
August 2013 (2)
July 2013 (2)
June 2013 (3)
May 2013 (2)
April 2013 (2)
March 2013 (1)
February 2013 (4)
January 2013 (3)
December 2012 (2)
November 2012 (2)
October 2012 (3)
September 2012 (3)
August 2012 (3)
July 2012 (3)
June 2012 (2)
May 2012 (3)
April 2012 (4)
March 2012 (8)
February 2012 (6)
January 2012 (3)
December 2011 (4)
November 2011 (4)
October 2011 (3)
September 2011 (3)
August 2011 (5)
July 2011 (3)
June 2011 (2)
May 2011 (2)
April 2011 (4)
March 2011 (6)
February 2011 (2)
January 2011 (5)
December 2010 (1)
November 2010 (1)
October 2010 (1)
August 2010 (5)
July 2010 (3)
June 2010 (5)
Categories:
Finance (2)
Finance, Mortgage (4)
General (164)
Mortgage (1)
Real Estate (2)
My Favorite Blogs:
Sites That Link to This Blog:
×
Close
Add a new blog comment
*
Name:
*
Email Address:
URL:
*
Comment:
Characters from the image above:
Your entry does not match the image, please try again.
Submit Comment
×
Close
Subscribe To My Blog
*
Name:
*
Email Address:
Address:
City:
State:
Zip:
*
Characters from the image above:
Your entry does not match the image, please try again.
Subscribe