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Silly Putty! Inflation! and Higher Rates...

A homeowner reaching their hand into a cookie jar

Here we are 6 months into 2022 and a lot of you have been asking me if I stuck to my New Year’s resolution to lose weight. I’m happy to announce I’m down five pounds!! Wait, my other resolution was to quit lying so much, so let me retract that last statement -  the truth is  I’m actually up three pounds. In efforts to help me my wife took the whole box of Entenmann’s chocolate chip cookies and threw them down the garbage disposal. (*I went out and secretly bought more, that’s what the last box of Entenmann’s – rest in peace - would’ve wanted.). Anyway, like everything lately I am going to blame my weight gain on inflation.

Inflation Quote of the Day: “Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.” – Sam Ewing

This Week in Economic History: It was this week in 1862 when Congress signed into law the Revenue Act, which included an income tax and the creation of the Bureau of Internal Revenue (which would later change to the IRS). Are taxes fun? No. Are there fun facts about taxes?  Yes.

Wuss’up This Week: Continuing with the theme of this week’s blog we have the GDP report today, tomorrow PCE inflation and Core Inflation reports, and a handful of boring reports on Friday that will not impact rates. But.. the reports today and tomorrow can shift rates in either direction if the inflation expectations come in higher or lower than expected.

Interest Rate Update: Today we find 30yr fixed conforming rates (*that’s for any loan at $647k or less) in the low-to-mid 6s, with jumbo 30yr (*over $647k) anywhere from the low-to-upper 5s. As usual rates will vary based on type of home, equity in the home, your credit score, and if you are someone that knows how to bend the rules.

Don’t Forget to Remember: Any purchase or refinance loan that closes with me will get a big discount on lender fees! Grab yourself a cup of instant karma and pass my info along to any friends, family, coworkers, or people that like cool architecture.

Inflation Quote of the Day 2: “Due to inflation, a picture is now only worth 332 words.” @shariv67

Timeout for Trivia: Congrats to those who last week guessed Dwayne ‘the Rock’ Johnson. Want to be entered into a drawing to win a five-pound block of Silly PuttySimply email me the answer to this week’s Who Am I? question. Good luck: “My movie came out on this date in 2016 – a few of my costars from that movie: one has a fruit in her last name, one is a chick who was popular in the 70s, and one you don’t want to joke about unless you want to get hit. A Sequel to this movie came out a year later – released around Christmas and had Christmas in the title. Twelve years earlier I lived in Neptune, California – with that town name you might think I am from Mars or something,  which yeah, makes sense. When that ended I starred in another movie with the actress from the 70s, and even though the movie was hit you might forget the title of it. Last hint: An anagram for my name is Bent Killers, but let me tell you I’m not hell bent on killing anyone! Why would I want to go to jail when I’m in such a good place now?”

Disclaimer: The views and opinions expressed herein are those of the author, Barry Schwartz and do not necessarily reflect the views or positions of any entities they represent.