Knee-jerk Reaction by Home Mortgage Interest Rates

With the Fed’s announcement last week that there may be a tapering of its bond purchase program sooner than later, stock market indices reacted by dipping by a few hundred points. A stock that I had bought with careful thought also took a dive! As an aside, the minute I buy a stock (a meager 100 shares), its price will go down!

With the Fed's announcement, home mortgage interest rates jumped up. This was to be expected – interest rates had been ridiculously low at around 3.5% for over a year. According to Freddie Mac, interest rate for 30-year fixed mortgages took ‘its biggest leap in 26 years’ from 3.93 percent last week to 4.46 percent!

"Higher mortgage rates may dampen some housing market activity but the effect will be muted by the high level of buyer affordability, and home sales should remain strong,” says Frank Nothaft, Freddie Mac’s chief economist. 

I don’t see how there can be a higher level of affordability. For the same monthly payment of principal and interest, home buyers will now afford a slightly smaller home (or lower priced home). But what will happen is that home buyers who were vacillating will be galvanized into action with the fear that interest rates may go up further.

 

With all the knee-jerking that’s going on, we might as well be watching the cancan at the Moulin Rouge!

Indigo Airlines in India - stealing by loaders

While traveling from Pune to Bangalore a few days ago, I had my iPhone stolen from my checked-in bag. My father's suitcase had the lock broken off, the zipper torn and contents rifled, but nothing was taken. Staff at Pune airport were helpful and I filed a written complaint. Several phone calls later, I was told that they did not find my iPhone and that they expect their loaders and staff at the airport to be honest! Really? How about ensuring that there is no pilferage? How about firing the Airport Security at the Indigo Airlines loading docks? Shameful!As a passenger, I expect safety for myself and my belongings. Or is that too much to ask?

At the Columbia Metropolitan Airport

Our Columbia Metropolitan Airport is the cleanest airport I have seen.

The parking garage is pristine - no litter or trash.

Enter, and you see shiny clean floors, carpeted areas are vacuumed. No trash. There are recycle and trash bins everywhere and people actually use them!

The walkways work (I have never seen them 'Out of Order'), and once to my astonishment, the cleaning lady was on all fours wiping clean the stainless steel base of the entire walkway! Wow!

The bathrooms! They are poems! The faucets are shiny, no water spots and they all work. Stick your hand under any of them, and you get warm water (try doing that in Europe. At the height of winter, you'll get icy cold water). All toilets are clean, the automatic flushes work. Water coolers are spotless and work!

Waiting areas. Again clean clean clean. And the seats are leather (okay, maybe faux leather)Qa, but they are comfy.

I know it must take a lot of effort, organization and commitment to maintain the airport like this. Kudos to the CEO and/or Director and Airport Manager! I