So here comes 2011

Lou Tornambe
WR Starkey Mortgage – 303-880-9977 – ltornambe@wrstarkey.com

So here comes 2011, are you ready for what is stacking up to be a GR8 year for Real Estate?

The possibility of future inflation moves mortgage rates.  There are other factors…but this is “the tide that floats all boats” regardless of the local weather.  When investors look at the global economy they try to figure out how the influencing factors (European sovereign debt, growth in China and India,  US corporate earnings, consumer price index, etc.) will affect our economy and if the result will be inflationary.  In a nutshell, a strong economy tends to push the threat of inflation up, a weak economy tends to pull that inflationary threat back down.

Last  week we had a mixed bag of reports – AGAIN – and so rates followed suit.  Corporate earnings in the US were positive but retail sales came in weak after the brief Holiday explosion.  Food andenergy prices jumped, but the prices for all the other goods (the core index) went up only slightly.

China’s economy is doing well, but Europe is still concerned with countries defaulting on their debt.

So while there are signs our economy is improving, we’re not out of the fog yet.  As a result. . . ok, not sure why all of the boating metaphors.

The 30 yr. will likely open on Tuesday between 4.625%& 4.875% depending on program, credit .

The RealtyColorado team – your choice for making your next metro Denver move

Advertisements

About dherries
Dave and Sally Herries and The RealtyColorado Team - Real Estate Broker serving the metro-Denver area. Offering properties in urban, sub-urban and rural areas. Our mission statement is "Enriching lives through real estate."

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: