Mortgage, loan and property. What is a mortgage?

A mortgage is putting a property as a guarantee to a lender as a security for a mortgage loan.

While a mortgage in itself is not a liability or a dept, it is evidence of a debt. It is a transfer of an interest in property, from the owner to the mortgage lender, on the condition that this interest will be returned to the owner of the property when the terms of the mortgage have been satisfied or concluded.

In other words, the mortgage is a guarantee for the loan that the lender makes to the borrower. In all but a very few states, a mortgage creates a lien on the title to the mortgaged property.

Tuesday, December 16, 2008

Historical decline in consumer prices in the U.S.

The index of consumer prices in the United States fell by 1.7% in November in seasonally adjusted series, registering its largest decline since its first publication in 1947.

Analysts relied on a decline in the index by 1.3%.

This fall, published while the U.S. Federal Reserve (Fed) should review its rate today, follows, on a scale unprecedented, the decline already recorded the previous month (-1%).

However, excluding food and energy, the index of consumer prices remained stable in November compared to October, after falling 0.1% the previous month, said the U.S. Department of Labor, which publishes the index.

The sharp monthly decline in consumer prices leads to a sharp slowdown in inflation over the year, the rate fell in November to 1.1%, against 3.7% in October.

The price increase was 5.6% in July, said the ministry.

The decline in the index is mainly explained by falling energy products. They plunged 17% in November compared to October, their largest decline since that statistic is established (1957), after a fall of 8.6% in October.

The energy prices are now falling over one year at 13.3% (they were still up 11.5% the previous month).

Gasoline prices had their largest decline ever, falling 29.5%. This had a direct influence on transport prices, which have also declined by 9.8%, thereby heightening their record drop in the previous month (-5.4%).

The prices of food have slowed their growth to 0.2% instead of 0.3% the month before. Since last year, the prices of food has increased by 6.5%.

The price decline is not yet felt on wages. According to the ministry, the real average weekly earnings grew by 2.3% in November after rising 1.6%. The real average hourly wage gained 0.4% after rising 0.3% in October.

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