Interest Rates & The Feds

Buy, sell or refinance?

Mortgage rates have been all over the place these past few weeks. At close of business on Friday they ranged from 4.875% (conforming ARM) to 7% (Jumbo 30 year fixed) with no points or origination fees. Word is that rates will rise over the next 30 days. The Feds pull the strings when it comes to mortgage rates and their mission is to avoid nightmares on Wall Street and create sweet dreams on Main Street.

Currently their biggest worry is a stagnate economy + runaway inflation = bad news.

THE FED'S DILEMMA:

WALKING & DRAWING THE FINE LINE

BELOW THE LINE = ECONOMY SKIDS

ABOVE THE LINE = INFLATION SPINS

OFFLINE = STAGFLATION WINS!!