The same applies to core inflation, which excludes energy and food prices. The big question is why the current wage increases are not pushing up inflation. And what is your answer?
During the recent housing boom, faced with soaring home prices and rising interest rates, many borrowers have sought to lower their debt service obligations by turning to mortgages with nonstandard payment and amortization schedules. Much of the new loans extended in the past two years have been nontraditional mortgages, including adjustable-rate mortgages with teaser rates and negative amortization features.