"Inflation is as violent as a mugger, as frigthening as an armed robber, and as deadly as a hit man."-Ronald Reagan. Last week the inflation numbers were not what mortgage interest rates like to see. Gas prices of course are up, when you go to the grocery store you will get less for more money how fun is that? Inflation is the arch enemy of bonds and home loan rates because inflation depletes the dollars you spend. That extra $500 dollars in monthly spending money that you once had is now more like $400 dollars. Your stock account may be down right now as most are, add in inflation and it is down even more.
The consumer confidence report indicated that inflation expectations are at an all-time high. Which means consumers are seeing inflation as a real threat to their current financial situation. This week on Friday we have the release of the monthly jobs report. This gives us a good picture of where the economy is headed in the short term. It shows the number of jobs lost or gained in the month of May. The last report showed a loss of 20,000 jobs in April, not so good. If we get a good report we could see mortgage rates rise but a bad report could help lower interest rates, stay tuned!
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