Beat And Battered

This week will be interesting for the bond market and mortgage rates. There are five remaining economic reports scheduled for release, but only one of them is considered to be of high importance to the markets. With data being posted all but one day of the week, we may see some noticeable fluctuations from day to day in mortgage pricing.  Generally speaking, despite the lack of a data-packed calendar, I would still maintain constant contact with your mortgage professional.

Interest rates remained volatile last week as worries about inflation continued to influence the mortgage market.   Comments from the Federal Reserve indicated that the current rate of inflation is above desired levels.  When the Fed is concerned about inflation, they tend to raise interest rates.  We recommend locking now before they go up.

Inflation data continues to hammer headlines and our wallets. News this week demonstrated what we have all been feeling; prices are higher at the pump, the grocery store and anywhere else you use your debit card. Interest rates trade off of bond prices and bonds HATE inflation. Coupled with this is concern about a declining economy which could hold rates back a bit, but the overall trend is higher for those seeking a mortgage in coming months.

Volatility being what it is these days, mortgage rates bounce around a lot. Upward pressure for rates one day gives way to downward pressure the next, only to succumb to upward pressure again.

The see saw between concerns about growth and fears about inflation tilted toward the inflation side again this week, after Fed Chairman Ben Bernanke addressed Congress in the semi-annual report on monetary policy. While detailing the challenges facing the economy, Bernanke noted that inflation was above desired levels and that upside risks for higher prices have “intensified” lately. A Fed seeing higher inflation usually can be expected to react with an upward move to the Fed Funds and Discount Rates at some point in the not-too-distant future. In fact, the Federal Reserve Open Market Committee explicitly noted at its last meeting that “with increased upside risks to inflation and inflation expectations, members believed that the next change in the stance of policy could well be an increase in the funds rate.”

Related Posts

• Chairman Ben Bernanke Testimony
• Treasury Secretary Henry Paulson Speaks On Housing Part 2
• Federal Reserve Video News Channel
• What Will The Federal Reserve Do June 25th?
• Mortgage Delinquencies and Foreclosures

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Yo, I must admit, in grad school I played video games, Madden and this boxing shit. What I remember about the boxing game was that when u would hit folk, it would say stuff like “body blow, body blow, head shot, body blow.” I like-ed that shit.

I am reminded of this because I feel that it is the perfect introduction to our economic concerns as we are all citizens of the united states of America, now true, I was gonna post on something I wrote this morning called “WORK HARD AND DONT COMPLAIN.” But after reading the comments to the previous post by the scholarly Jay MidNite, Kelso (and he has interest) and No slappz, I digress. Again, blame my pons, and throw in the sulcus of my medulla oblongata and my subsequent Glossopharyngeal nerve anatomy (in picture) while u at it.

Mane, Jones here love him some loot. And as a person that has adapted capitalism for his own well being, I take pride in using brain cells to do such, just as much as I do showing love to others. But it seems as if my economy don’t got no love for folk no more. I have personally documented several contusions to my efforts to accrue capital albeit I will not be denied.

First, the housing market is basically a bust, and it aint been this bad in 70 years. As of date houses prices have dropped maybe 15 to 20 percent in real terms and its only just beginning. Before it is all over, if you pate 100 stacks for a crib, it may end up being worth 70 stacks. Add to that the credit crunch which I figure is the worse since the post war period thanks to Sir Alan green hornet, I mean Span – which I wrote about a few weeks ago. I mean when folk loose a trillion dollar globally, it makes me think that one is in serious trouble; and don’t trust what am mother fucking bankers say. Then there are oil prices coupled with equity dropping like its jumping out an airplane. Just tell me that we got to work a lot longer to buy gas, let alone a barrel of oil. So as jay said, it dont matter, Europe at 10$ a gallon and we gon finally reach the rest of the developing world -yawl aint ready though.

The strange thing to me is that households are paying interest rates no different than in the past. Sure we just got some stimulus checks, but they will only last and benefit one quarter – the second. Yep, it is good; I mean a 100 billion for one quarter but when it is gone what happens next?

All I am saying, and Jones here aint no economist, but rather a single man that like saving and counting money, for money is to make money and not to spend. We don’t even contribute to global GDP growth, but rest assure, the rest of the world does when we cant and will move alone.

The US has weakened for past to years when the rest of the world has shown increased growth and in most cases accelerated economic growth. Europe, Japan, China, and don’t add Arab countries. Not to scare yawl living like life is all that, my query is if the rest of the world can find economic growth, why cant we folk? Cause all I’m seeing and feeling is body blow, body blow, head shot and body blow.

Addendum: Pic to rt.

Point of order: If u dont know y this blog is raw dawg buffalo, u will now. I dont melt under rain nor word.

I am an optimist true, but I have denied inside, that we can make it if we try, for I have failed to acknowledge that we aint EVEN trying. I am putting down what I am reading now to write what I’m finna (im country) write now. I only had about 45 pages of Pursuit: the chase, capture, persecution & Surprising Release of Confederate President Jefferson Davis. Really I have finished the text, I am just going through the 40 or so pages and 270 sum odd footnotes, to check the authors (Clint Johnson) interpretation of the events depicted - great read. In fact checking the footnotes is the best part of reading to me cause you find out about other books. Any who, im finna stop because my blog rounds lead to such. And forgive me if I don’t know when to stop because Im listening to Chuck Brown and the Soul searchers “Midnight Sun.” Appropriate cause I hope I can make some of yawl search yawl souls, which in my case is integrated with time, thought and the ability to reason.

We got to get out shit together folk. I mean, I went around the blogoverse over the last few days and all jones hear saw and read was either about Jesse Jackson, The cover of the New Yorker or Mr. Obama. Like dang folk, are we that myopic, limited in our intellectual sphere to consider such to be super important, as if these topics are all we can think about? Or as if they (these issues) were like melanin – super ferrous magnetic. Shit jones, folks could be about to start slavery back in affect and we on the hook, line and sinker tip still. What gives? When will we value free thinking and look for ourselves as opposed to respond to what other dangle in front of us. They say the Bass is a smart fish, but I never figured he was smarter than us. They don’t bite at anything, even if it right in front of their face.

So your outrage over a satirical drawing or an obsolete former jones who ran for president is unwarranted, I mean is it important? Shole aint interesting. But get outraged while jones her say fck that shit mane. What does it do or what purpose does it serve? Chances are folks who think about Obama that way still and would have if they never did it. That Don’t do jack for me. So yawl go ahead, cause Im more concerned about China, the Juan and global inflation. You see the way they control they currency rates, in concert with how fast their economy is growing may be bad for the world, especially US in the country of the New Yorker magazine.

I mean, in my junior high civics class, we talked about inflation and other stuff a lot albeit I don’t know what Civics is to this day, I do recall the hodge podge of subjects it encompassed. From what I learned, if China keep on growing like they are, they can boost the current level of inflation else where cause the gone need more stuff (raw materials) to feed their growth.

Seeing that we in the US have cut interest rates, its gone be hard for China to raise the value of the Juan – since it is pegged on the dollar. This means if oil don’t come down, an increase in the value of the Juan would mean the stuff they send here that we buy like crack (cellphones, TV’s. Cars, Steel, MP3 players and CDs) will make them a lot more expensive and hard for yawl to purchase. They done had the earth quake and some food shortages too – could be on like pop corn. Cause its already real in the field.

So Jones, don’t think for me mane, or tell me what I am supposed see or feel when I read or see an image. Cause im like, fk that shit, Midwest air lines just laid off 1400 workers and we dont know how many GM finna lay off. Its cool if yawl wanna be outraged over a magazine cover that I doubt many yawl read. Care about what impacts you for real though. So with that said, go find your self some Chuck Brown and get that head right and soul search with the master. Other wise, go and suck down some Juan Ton Soup, oh I mean Won.