Dennis' Mortgage Blog

Made famous by Alfred E. Newman and Mad Magazine in the 1970's "What me worry" may sum up the minutes from the Federal Reserve meeting in March that were released to the public today.

Not all the members of the Fed's Open Market Committee were in agreement on the issues, but Chair Ben Bernanke seems to have the final word and he is taking Alfred's approach to potential issues, why worry?

Acknowledging the sharp increase in fuel and commodity prices, like bread and butter, but feel the increases are only temporary.  I am not sure how they feel these prices will come back down--especially if as they say the economy is gaining footing, but evidently some in the Fed are not worried about you paying $4 or more per gallon of gasoline to go to the Ralph's or Von's meat department to purchase ground chuck at $4.39 a pound. 

It appears that the higher prices you have been paying are more of a concern to the Fed from the inflation expectations the higher prices give you than the reality of actually paying the higher prices.

Why is this important? Because when a majority of the Fed Board of Governors feel inflation is real and not an expectation they will vote to raise short term interest rates to control the inflation.  When might this happen?

Some governors are indicating they feel short term rates will need to rise by the end of 2011.

In the meantime don't worry, the Fed feels your expectation of paying more for your daily commute and meals is only temporary.

Mortgage rates continue to remain low for the time being.  Call or email Dennis today to determine your purchasing power for a new home loan or monthly savings from a refinance.  Direct dial 562-472-1118