First, a little housekeeping. I’ll be posting on income property operating expenses, but not today.
There are a couple schools emerging on our current interest rate scenario — and what it means for the short term. As you might guess, there are those predicting higher rates soon, and those who think the current jump has a short shelf life.
Frankly, I belong with the later bunch, though I’m not offering great odds. 
It’s my contention Bernanke will continue his aggressive campaign to keep them down. Remember, the Fed is autonomous, a fact for which we can all be thankful — even with all the historical (and relatively recent) timing screw-ups. How much and/or how long he’ll be successful isn’t a call I’m even gonna pretend to make. Not one to mince words, I’m at a loss. The reason? While Bernanke is doing his best to spur recovery with low rates, it seems most of D.C.’s leadership is, in my humble opinion, bent upon turning most of the nation’s big business into various versions of the post office.
Not a happy thought.
Gotta think we’ll know which way rates wanna go in the next 10-15 days or so.
Meanwhile, back at BawldGuy Ranch — gimme a call at 619 889-7100 and together we’ll figure out what’s up. Have a good one.
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Mortgage rates are decoupling from market interest rates and are now more a matter of policy than the economy. As long as the government is purchaser of first resort for debt paper we can expect mortgage interest rates to reflect their desire to preserve housing asset values and not the cost of borrowing/lending.
Policy, backed by bond purchases, only goes so far. The fear of inflation is back, and the trend is up. A rear guard action will be fought, but it will probably only slow the upward creep.
Meanwhile, those of us with rate locks are camped at our lenders’ doors, trying to push the paperwork through the system.
I’m a maniacal Fed watcher. I had a floating bias until yesterday when Bernanke suggested that the milky Federal teat (the MBS support plan) might be dry. I’m biased towards locking-in mortgage rates at application now
Readers — If Brian’s modified his view on this subject, my experience is to go with him.
Thanks for stoppin’ by, Brian.