Why is Freddie Mac reporting the lowest mortgage rates since 1971?
by Mortgage Rates on Thursday, October 7th, 2010 | 4 Comments
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They do not care Obama gave them our bankbook ….spend all you wish…
Because of uncertaintly with the world debt crisis and the stock market, money is flooding to safe-harbor Treasury Notes, which mortgage rates are linked to.
Because Bernake is keeping the index rates and the short term rates artificially low.
Once those rates return to normal, the mortgage rates will go up as well.
Here’s another little tid-bit. Inflation will go up too. Right now, inflation is in a single digit of 2.
Yet, the misery index is at 11.72 up from 7.42 under Bush.
Misery Index is Unemployment + Inflation.
The number is being driven by Unemployment almost exclusively.
If Bernanke raises his rates, the sure inflation spike will cause the Zer0bama administration to implode.
BTW, New home sales are at their lowest levels since 1962.
Misery Index (11.72) = Unemployment rate (9.7) + Inflation rate (2.02)
Because its not like its their money, they are following the orders of the regime