JKG & Associates, LLC.

The Upside of Inflation, Your Mortgage While the governments of the world have been printing money to keep rates low, we have all benefited with lower interest rates. Eventually the piper will have to be paid and the result will be inflation. We don't know if thats coming in one day, one year, or even ten years, but here is some good news: Although I generally advise that eliminating your debt is a good thing, taking advantage of the low cost of money today and borrowing t...he maximum amount a lender will give you when you buying or refinancing your home can be extremely advantageous. Since the loan amount will be declining, or remaining constant dependent upon your chosen loan program, you will get an effective discount on your mortgage as the value of money drops. Invest the money you are not putting in your home in to an alternate asset that rises with inflation; like inflation indexed treasuries or commodities. If you or someone you know would like a mortgage made easy, please call me, Jeff Goodman, at 310.552.5333, email me directly at: [email protected].

Interest Rate Week Ahead: This past week may have been doomed from the start. Data was light, no auctions, volume was light. Next week included a round of Treasury auctions at the lowest yields since as far back we have records. Auctions kick off on Monday in order to make room for TIPS and T-bill announcements on Thursday. Data highlights include PPI, Retail Sales, CPI, Industrial Production, Philly Fed. Most importantly, it's the last week before the 2 day Fed Meeting on 9/20 and 9/21.

Home loan borrowing costs moved marginally higher this week. Fortunately these unfriendly developments did not negatively impact Current Market. Mortgage rates are still hovering just above their best levels of the year. Fear of the unknown has put lenders back on the defensive though. This is generally not a favorable market environment for rate watchers.