National Mortgage Rates Hit Record Low

Mortgage rates have fallen to new lows again. In fact, the rates on 3-year mortgages have fallen to 4.19% which is the lowest rate back to 1971, which is almost 40 years. The average 15-year mortgage loan rate fell to 3.62%, which is the lowest going back to 1991. Rates could fall even further if the government keeps up with its plans on quantitative easing.

Our heads are scratching as to when the economy will move forward. One thing is for sure — our prediction of higher commodity prices, particularly in the grains, has started to come true. Expect BIG increases in the cost of living, due to inflation next year, at the very same time that (1) unemployment worsens (2) the housing market does not rebound and (3) more assets deflate in price.