Mortgage Rates Still Rising
Well, I was finally able to check out mortgage rates again, after both cars broke down and one kid was sick. (It's amazing how life can just sweep you up in details!) Well, now that Number 1 son is sleeping again, and we've invested (I use the term lightly) in a van to handle our family, I've seen that Freddie Mac says that mortgages are up yet again.
In fact, in its latest report, we are now looking at an average rate for a 30-year, fixed mortgage of 6.71 percent. It hasn't been that high in 4 years. Again, we are hearing about inflation and the need to tame it.
I have to say; I wonder how higher prices are being driven? The only thing that I can understand as going higher at the moment is fuel, which shouldn't be rising either. We're being punished by stock speculators, who are driving prices up unnecessarily; that combined with the fears of investors regarding this year's hurricane season is making for a nasty turn in interest rates, I suspect.
Who'd have thought that the price of oil could even affect interest rates? We live in an economy where the stock market has such an overpowering effect on so many other aspects of our lives. When you consider how few of us are actually directly invested in the stock market, it seems even crazier that it could have such an overwhelming impact.
I suppose for those who lived through the Depression of the 1920's, the impact of the stock market on our lives is no surprise at all.
Here's a thought: I think that if we all reduced our debt, the interest rates would have to come down, because the lenders would be competing for our business. That's what happens when competition reigns in the private sector.
Now that would be a nice situation for us all to be in.