Returning to a “normal economy?” February 7, 2018

After a decade of weak inflation, suddenly synchronized global growth, the fastest US wage increase since June of 2009, and fiscal stimulus from the GOP tax cut have convinced investors it will become pervasive. This, they fear, will cause the Fed to raise rates more rapidly than expected and is what precipitated the steep decline in equities.? This is the reason our mortgage rates have been rising for the last few weeks.? Relax, this suggests that we are finally returning to a more normally functioning economy. It could mean higher rates on the horizon, but remember, 30 year mortgage rates in the 4%’s is not bad.? We have just been spoiled for a long time with such low long term mortgage rates.