by Alterna Mortgage | Mar 18, 2022 | Financing, Inflation, Interest rates, Mortgage Programs, Real Estate
Thanks to a 40-year high in inflation, Americans are already facing higher prices at the gas pump and the grocery stores. And now the cost of borrowing will increase as well. With an increase of the benchmark rate a quarter of a point on Wednesday, the Federal Reserve...
by Alterna Mortgage | Mar 9, 2022 | Financing, Interest rates, Real Estate
Interest rates retreated from 2019 peaks as the Ukraine invasion by Russia escalates and grows more uncertain. No one knows if, when, and how this will end. When the world experiences tense geopolitical moments, it drives what is called a “safe-haven” trade into the...
by Alterna Mortgage | Mar 2, 2022 | Inflation, Interest rates
Russia/Ukraine Remains Unresolved High oil prices are rough. It’s a tax on consumers that goes uncollected. Should the Russia/Ukraine story escalate, and oil prices head higher, the Fed will have to soften its tone and be more dovish or accommodative. The opposite is...
by Alterna Mortgage | Feb 28, 2022 | Financing, Home Buying, Housing Market, Inflation, Interest rates
Things Are Not All that great with the economy In addition to the inflation problem, the economy is decelerating. Economic growth is slowing. The consumer is assuming more credit card debt to pay for items and fuel costs are soaring. This is a very difficult...
by Alterna Mortgage | Feb 24, 2022 | Home Buying, Housing Market, Interest rates
Financial Conditions Have Already Tightened Part of the Fed’s mandate is to maintain price stability (inflation). The Fed helps lower inflation by raising the Fed Funds Rate, which tightens monetary conditions and slows economic demand. If demand slows, prices come...
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