Collision Course of Inflation and Adjusting Mortgages?

Unclogging the mortgage mess' drain meant the Federal Reserve was willing to lower rates in order to increase the amount of money institutions were willing to lend. More money being lent means more projects getting built (thus more jobs), and of course, more things getting purchased (from cars to homes). But, and this isn't new, from the moment that all the financial wizards agreed there was a problem in the market most news stories have had a cautionary paragraph at the end of their report which noted eventually increasing that cash flow would spur inflation worries. Guess what? Fed Chairman Ben Bernanke is getting more full throated about inflation concerns. Why do you care? Because when those other adjustable rate mortgages (ARMs) reset come next Spring we just might be at the point where the market it still stalled but inflation will mean no help in the rate cut. Result? Who really knows. But, we'd like to see more news stories explore both of those concepts colliding. If I were buying a house now, I'd be thinking about locking in a rate, but at the same time I couldn't be sure that prices wouldn't go down further. Especially given next Spring. If I were selling a house, I'd worry about next Spring. It puts a lot of pressure on brokers and sellers this Summer. In the meantime, check out CNN's solid coverage today on this.