October 8th, 2007
Mortgage Interest Rates, Inflation, and The Dollar
As I said before, mortgage rates are effected by inflation. If inflation increases then mortgage interest rates will increase. The general idea is that if the US dollar goes down in value compared to other currencies then the cost of foreign goods will increase, and as you know already, we buy a lot of foreign goods. If those goods cost us more, then that is seen as inflation, thus an indication that mortgage rates will increase. So, is there really a need for concern? Read, Is A Weak Dollar Really So Terrible?
Share ThisPosted by scott on October 8th, 2007 in Economic Info |
