Home / Housing / Mortgage Rate: 3.8% for 30 Years
Print Friendly and PDF

Mortgage Rate: 3.8% for 30 Years

Written by Gary North on December 19, 2014

The rate of price inflation (median CPI) was up a tiny 0.1% last month.   The CPI was down by -0.3%.

The 30-year mortgage rate is at 3.8%

There is no “inflation premium” in the mortgage rate today. This sends a signal: “Don’t worry about price inflation. Lend!” This will prove to be a misleading signal for lenders, and a bonanza for borrowers.

The price of homes could fall in a recession. But the Federal Reserve will inflate. It will not tolerate recession. So, home buyers over the next 30 years will see the nominal value of their homes rise until the FED stops inflating for fear of mass inflation. That is years away. Keynesians inflate.

To lock in 3.8% for 30 years is a give-away.  Naïve lenders are handing over their money to borrowers. The FED will smash them.

Do not lend at 3.8% Borrow.

Continue Reading on www.katu.com

Print Friendly and PDF

Posting Policy:
We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse. Read more.

Comments are closed.