Inflation Elation; Home Sweet Home Loans; Feeling 1.7 % More Secure

Get your motors running…

Image courtesy of kongsky/

Image courtesy of kongsky/

We can all breathe a collective sigh of relief now that the numbers are telling us how stuff like inflation and the cost to live on this planet, at least our part of it, didn’t really change, as in go up, down etc. Well, it did. Slightly. But nothing that would require any action from those money experts at the Federal Reserve. This means interest rates get to stay nice and low.  For now, anyways. But it should be duly noted that the Feds would prefer to see inflation actually go up. A bit, anyways. Because apparently that would be healthier for the economy, according to people who qualify as experts. What has also become a rather pleasant occurrence is the price of gas these days, which has been going down to an average of $3.09 per gallon. Now who doesn’t love a drop in gas prices? Never a bad thing, in my most humble opinion.

The rates are falling! The rates are falling!

Image courtesy of phasinphoto/

Image courtesy of phasinphoto/

Look out for new neighbors with mortgage rates falling down all over the place.  According to the very insightful index of the very insightful Mortgage Bankers Association, or MBA for those in the know, all these new nifty low borrowing costs have resulted in a major increase in mortgage applications. We’re talking an 11.6% increase in applications. Numbers that big haven’t been seen since January. The week before saw a 5.6% increase. Thinking of going for the plunge on a 30 year fixed loan? Well those rates went down to 4.1%. Or perhaps you are mulling over a 15 year fixed rate mortgage? The interest rates on those babies dropped to 3.28%.

Social security butterfly…

Image courtesy of Stuart Miles/

Image courtesy of Stuart Miles/

In case you will be wondering (and why wouldn’t you be?) what happened to over 6.2% of your paycheck towards the end of fiscal 2015, look no further than the Social Security tax. Around 10 million Americans will be shelling out over $7,300 towards that “fund” next year. The cap on that figure, by the way, is $118,500 for 2015. Fret not, taxpayer as that is but a mere 1.3% increase over 2014’s $117,000 cap. But wait, there’s more. The millions upon millions of retirees receiving social security benefits will receive  1.7% fatter checks in 2015 thanks to the Cost of Living Adjustment, or COLA , for those in the know (and not to be confused with any beverages, mind you). For the average retiree, that amounts to about $22 more per month on a monthly check of $1,328. If you think that number is, shall we say, unimpressive, then consider the fact that in 2010 and 2011 there was a 0% increase. Z-E-R-O.

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