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Dallas Mortgage Loan Officer Rodney Anderson's Weekly Mortgage News: For the week of Aug 21, 2006

"INVEST IN INFLATION...IT'S THE ONLY THING GOING UP." But this sage advice from Will Rogers may need to ride off into the sunset, as last week's economic news showed inflation does appear to be roped and under-control. The two headline reports of the week were the Producer Price Index (PPI), which measures inflation at the wholesale or producer level, and more importantly, the Consumer Price Index (CPI), which measures inflation on the consumer level.

WITH JOHNNY DEPP AND HOLLYWOOD BRINGING THE PIRATE LIFE BACK IN STYLE...ALL HANDS ON DECK TO READ THIS WEEK'S MORTGAGE MARKET VIEW. YOU'LL CATCH A BIT OF PIRATE LINGO THAT WILL HELP YOU AND YOUR FAMILY STAY HEALTHIER IN THE YEARS TO COME.

The simplest definition of inflation is purely the "stuff" we spend money on costing us more of our hard earned dollars than they used to - so this news is of importance to everyone. Both reports showed lower readings than expected, for producers of goods and services, and for us - the consumers of those goods and services. Because fixed return Bonds hate the threat of inflation, they enjoyed the news and popped higher, bringing about .125% of improvement to home loan rates.

While the long string of Fed Funds Rate hikes finally came to an end at the Fed's last meeting - it appears that the hikes are starting to have their desired impact. And the Fed is likely breathing a big sigh of relief, as this decision to pause now has some confirmation.