McPaper Puts Three Quality Stories In The Money Section

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I'm not a huge reader of USA Today, but I happen to be at hotel on Long Island this morning and McPaper showed up at my door this morning.

Surprising to me, there are a few interesting stories in the Money section.  So, as we usually do, let's relate them to mortgage rates.

World events work against grain buyers
Bad weather and surging global demand has created the tightest grain stock in 30 years.  Wheat prices are skyrocketing food companies have a choice -- absorb the costs, or pass them on to consumer?  Either way, mortgage rates should benefit because less dollars are being spent on capital and/or consumer goods.  A slowing economy retards inflation.

Fed chief's outlook: 'Uncertain'
Ben Bernanke says that housing is likely to be a significant drag on the economy through early 2008, and that conditions in financial markets have improved since "the worst of the storm" in mid-August.  Half of Bernanke's job is to help keep markets calm so this speech may have been a giant preview for the October 30-31 FOMC meeting. 

Oil surges to record, but gas prices don't follow suit
As with wheat prices, it's only a matter of time before producers pass on rising costs to consumers.  One major storm or cold spell and prices could rise not only at the pump, but in our homes as well.  This normally pushes mortgage rates lower because higher costs forces disposable income to drop, thereby slowing the economy.

Justin Timberlake and Scott Wolf dine at Mawat; Unaware of Mortgage Planner Dan Green
Okay, this story didn't show up in USA Today, but it happened.  I wondered why it took nine waiters to serve that table next to me until I looked over.  Neither was impressed with my new haircut.

That's all, folks.  Bring it on in to Omeletteville.