If you’ve followed DQYDJ for a while, you know that we like to revisit some types of articles for a follow up. One series we have been working on is the so called “real cost of mortgages” – an estimate of the actual, real interest rate that a mortgage will cost over its lifetime. Mortgages […]
On Monday, we discussed how to quickly determine the rough inflation expectations in the general market, at least when it comes to CPI. We also linked you a calculator we built which calculates inflation expectations over various timeframes. All that is well and good – but what can you actually do with that information? Therein […]
We found historical homeownership rates buried in a digitized Census Bureau report from the 1970s indexed and searchable at the University of Minnesota. We’ve reproduced the additional data points in the chart and table. You can find the quarter to quarter homeownership data from the Census Bureau at the St. Louis Fed’s FRED economic indicator […]
Dateline, DQYDJ’s original research department: We decided to reprise one of our earlier data examination ideas with an even closer dive into inflation expectations than Monday’s diversion. We’ll go a bit further – since the most popular mortgage types are 30 year fixed mortgages, the actual expected cost of a mortgage isn’t the sticker price, […]
I try to run my personal finances like I would run a business: Use debt to leverage high ROE assets. Limit expenses and maximize revenues by exploring future potential revenue streams. This manifests itself in many ways in my life… and how I pay my bills. When a bill is due, I wait until the […]
I wanted to take the time to write down all of the personal finance basics as I see them, to create a great resource and easily linked article so you – and your friends – can learn everything without having to search. This post came after years of studying the field, and writing for this […]
I’ve seen the arguments, and – most likely – so have you. The talking heads agree you should pay off your mortgage. While a fine goal for your retirement, the vast majority of people have no need to pay off a mortgage early. Today I’ll take up the opposite argument. For most of you, don’t […]
Bells are ringing! I am finally worthless! With my paycheck today my net worth has finally passed the literal and psychological $0 barrier. My financial leverage given a net worth of $1 is about 45,000-to-1. Let this be a lesson to everybody: massively over-leveraged financial positions can only end positively. Look at Long-Term Capital Management, MF Global, Bear Stearns and AIG: their executives still managed to escape with millions of dollars!
A lot of recent financial news has focused around the spreading European sovereign debt crisis. The big question many Americans now try to answer is what this means for them on a day-to-day basis. At the same time as this is happening, the Fed has declared that they will endorse a policy of more transparency, opening up their forecasts to scrutiny and understanding.
As we occasionally point out here at Don’t Quit Your Day Job, inflation expectations are an interesting indicator that can be calculated from market data. They become even more interesting when we combine them with other measures. It becomes yet more interesting if you are in the market to refinance a mortgage or purchase a home. Read on for an interactive chart on the 30 year mortgage and the market’s 10-year inflation expectations.