Bonds worsened yesterday in response to information in the Minutes from the Federal Reserve’s last meeting. These minutes reflect discussions among decision makers at the meeting where, for only the second time in two years, short term interest rates stayed the same rather than going up.

Some comments in the minutes show that the Fed may raise rates again, talking about continued economic strength in the new year, and whether or not the recently lower energy prices (see my recent post below on this topic) would return to their previously high levels.

WHAT DOES THIS MEAN TO YOU? Rates ticked up a bit today based on the news, and uncertainty about inflation and the strength of our economy will be present for the immediate future. If you are not already working with me or one of my colleagues at KLM, is your mortgage broker watching this stuff?

Good News About Energy Prices!

While the weather is predicted to be 5.9 percent colder this winter compared to last year (booooo!) it is still expected to be 2.1 percent warmer than normal (yay!). Still, the cost of heating your home should be lower than last year, because natural gas prices have gone down. I know, I know, you want solid numbers, right? On average, those of you who have a natural gas furnace can expect to spend about $119 (13 percent) less this winter to keep your home warm.

Source: the Energy Information Administration

Breaking News!

KLM Mortgage combats cavities this Halloween season! Local area dentists not happy!
KLM Mortgage Group is officially banning candy this Halloween season. Bring your kids in to the KLM office during the week of October 23rd – 27th for a candy-free and sugar-free trick or treat bag.

100 available ● First come, first serve.

Join Us In Our Efforts

Do you know what it feels like to be outside on a frigid, cold, Wisconsin winter day, fingers and ears frozen because you can’t afford a hat or gloves? Probably not! Did you know that thousands of children in the greater Milwaukee area experience this every year?

Do your part to keep a child warm this winter. The KLM Mortgage family has kicked off the 1st Annual "KLM - Keeping Kids Warm in the Winter." For every hat or pair of mittens or gloves donated, KLM will add 3 more.

Drop off (or mail) all kids and womans gloves, mittens and hats now through October 27th , at our office: 7119 W. North Avenue, Wauwatosa, Wisconsin 53213. We will be distributing all donations the first week of November to local area shelters including: Battered Women Shelter, Salvation Army, La Causa and the Milwaukee Rescue Mission.

How good will it feel to help keep a child warm this winter?

Are The Rate Tides Turning?

Rates have continued to decline this week! I have called a number of my clients whose current rate warrants a low cost refinance to take advantage of the lower rates currently available on 30 year fixed mortgages. Call me today for information on how YOU can save money every month!

What is going on in the mortgage market? Inflation seems to be in check, and on Friday St. Louis Federal Reserve Bank President William Poole made the follwing statement: "If inflation pressures are easing, even if only gradually, and there is a genuine prospect that inflation will return to the comfort zone, then I see no reason to accelerate the decline in inflation by maintaining a restrictive policy in the face of declining employment."

What does that mean in plain ENGLISH? The long series of rate hikes which ended in August is certainly over, and if conditions are right, we may see rate reductions in the not so distant future. There is a jobs report coming out this friday, which provides an important measure of how strong the economy is and will impact policy decisions by the Fed in the coming month.

Keep an eye here, and be ready to take advantage of my low or no cost refinance offer if your current mortgage is not the best available!