FW: Up, Up and....Economic Update

 

 

 

 

The Mortgage Advantage, Inc.

Harold Perkins & Mary Ellen Kohut

YOUR IN-HOUSE LENDING TEAM

480-831-1588/800-499-2183

 

 

Our annual vacation to San Diego and the beach in our SUV with the kids and dogs has been replaced with a sleepover near the pool.  As you may remember our SUV is parked in the front yard keeping guard over our neighbor’s gnomes.

Why did the gas prices go up?   There are several reasons.  Economics  101 (yes, I slept through that class, too) - Supply and Demand: The global population has tripled over the past 72 years and growing by 75 million people per year with 60% of the world’s population residing in Asia.   The economy in Asia has exploded and with success comes the need for bright shiny automobiles.  Do you think the oil companies control the oil? We should have stayed awake.  Governments control the oil.   OPEC, consisting of Algeria, Angola, Ecuador, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, and Venezuela, controls half the world supply of oil.  Russia is quickly getting their untapped reserves into production.  See anyone there you would want to invite for your sleep over?  Inflated oil prices, much like the housing boom in 2005 (stay with me on this) has a negative effect on the economy.  We have experienced oil spikes in the past but they always came back down to a manageable cost.   Another reason is the “futures trading” on the stock market.  For a really good time, instead of going to Gila River and playing the tables,  bet  the oil prices will continue to rise. It is legalized gambling on the future of oil.  Gas prices affect the overall economy with us spending more money on necessary items and our incomes not keeping up.  It is called inflation.  The Fed is responsible for keeping inflation down and to accomplish that in the past, they have raised the Fed rate.

 

FYI:  Mortgage News:  FannieMae announced earlier in the week they will no longer accept lease agreements on current homes.  The borrower will have to be approved with both payments and have 6 months reserves.  The timeline is soon and the guidelines are forthcoming.  “Buying and Bailing” will be curbed.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The Mortgage Advantage, Inc

1720 E Warner Road Suite 1

Tempe, AZ  85284

Truth In Lending Promotes Trust In Lending

 

 

     

MB0015727

 

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