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Tuesday, January 26 2010 00:00 |
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Is This a Goldilocks Moment?
Home prices rose for the sixth straight month in November (just released data) according to S&P Case-Schiller and consumer confidence rose to its highest level in more than a year according to the Conference Board. Meanwhile the ten year Treasury Bond stepped back to 3.6 level after breaking 3.85% per cent January 11th.
Bank rates for our lenders are unchanged. With $1 trillion in new money created, we would expect, as the recovery takes hold, that either inflation will start to pick up, or that the Fed will tighten rates and credit to restrain inflation, leading to the same result: more costly borrowing.
With adjustable commercial loans at 5% or less, hybrid loans at 6% and ten year fixed loans under 6%, soon we may think of these as the good old days. |