Rocky Times Ahead ?

With Inflation at 2.5% in the last August to August Year do we have anything to worry about? Some may say not really but think about it. Even at 2.5% per year a $20,000 car would cost nearly $23,000 just counting the Inflation factor not any other labor or parts cost increase. On a $200,000 home it add $5000 per year just for the inflation factor! Add that to everything else you buy and you get the point. What if it rises to 3-4 % per year as it has many times in the past. The Feds have every right to be worried and so should you. If you are getting 5% on your savings you really are are only getting 2.5%. We feel rates will move up into the 7% range before too long and even at that they will still be "low" by past standards. Some of the home price drops will help wash out the inflation factor and possible rate increases so keep looking for that 'perfect' home. You need good credit scores to get the best rate.You can check your credit scores online at My Fico.Com or Equifax.Next, you need to have some savings for a 5% or more down payment. Do you have a good way to save for a down payment? We highly recommend Emigrant Direct. They pay one of the highest rates in the country on their savings account, with no minimums, no fees. www.rateinformer.com