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The Relationship Between Deflation And Mortgage Rates

Posted on February 3, 2009
Filed under On Deflation

The relationship between deflation and mortgage rates in pictures 


With both consumption and household income down last month, it's as good a time as any to rerun this graphic from November.  That Great American Penny-Pinch is making deflation as real a threat to the economy as inflation is. 

The difference, though, is that deflation can be good for mortgage rates.  Inflation rarely is.

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Dan Green is an active loan officer. Email or call 513-443-2020. Dan is on Twitter at @mortgagereports.

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