securityonefinancial
06-26-2008, 01:14 PM
so let me inform you on what's been going on with mortgage rates lately:
they have been going up for a while now (that is true about what others were saying), because there was so much buzz about "inflation" in our economy. but as of yesterday there was no more talk of inflation, Ben Bernanke (graduate student at M.I.T., and he has been studying central banking ever since. By the time President Bush nominated him to run the Federal Reserve, at the end of 2005, Bernanke knew more about central banking than any economist alive), was talking about how the economy is slowing and may be going into a little bit of a recession. which is good news for the rates because in a recession the economy is slowing. In order to stimulate growth the Federal Reserve will lower rates. The purpose is if money is cheaper, more businesses will borrow and expand.
they even went down a little yesterday... so
bottom line: rates will be lowering in the next few weeks-months.
they have been going up for a while now (that is true about what others were saying), because there was so much buzz about "inflation" in our economy. but as of yesterday there was no more talk of inflation, Ben Bernanke (graduate student at M.I.T., and he has been studying central banking ever since. By the time President Bush nominated him to run the Federal Reserve, at the end of 2005, Bernanke knew more about central banking than any economist alive), was talking about how the economy is slowing and may be going into a little bit of a recession. which is good news for the rates because in a recession the economy is slowing. In order to stimulate growth the Federal Reserve will lower rates. The purpose is if money is cheaper, more businesses will borrow and expand.
they even went down a little yesterday... so
bottom line: rates will be lowering in the next few weeks-months.