San Diego Mortgage Rates Report: November 1, 2007
The Fed cut yesterday and mortgage rates in San Diego went up.
GDP growth is the best it's been in 18 months. Inflation,excluding the costs of food and a gallon of gas, is tame. This suggests that the economy is growing regardless of what we are feeling with this housing slumpin San Diego.
Wall Street still thinks rates will be cut further. Confused?
A cheeseburger happy meal at Mc Donalds and a gallon of gas at Chevron are almost twice as expensive as they were in 2003. Monthly housing expenses (including the higher mortgage payments) are some 50% higher than they were in 2003. That may just be a measure of the staple goods but that is real money coming out of consumers' pockets- money that could be used to purchase cars, computers, etc. Shouldn't the Federal Reserve be raising rates instead of cutting them?
