OPINION Inflation is slowing

The Feds just raised interest rates a quarter percent, hoping to get inflation under 3%. The side effects are rippling through the economy. There are some signs that food prices are coming down. However, not gasoline, dining out, and perhaps most important of all, not mortgage costs which have doubled. There are no immediate signs of declining.

F inancial experts, lenders and real estate people tell us we should not spend more than 30% of our annual income on housing costs.

Higher interest rates have a big effect on the cost of your next home if you are planning to buy. For example, in the metro area if you were going to buy a $400,000 home and the mortgage interest was 3%, that would cost you $1,686 per month and your income would have to be at least $67,440.

About the Town

Gene Johnson

Now the interest is at 6%. That would bring the monthly payment to $2,398 and your income would have to be over $95,920.

A big issue before you make a decision.

T here is a shortage of homes on the market and the prices have gone up rather dramatically after the COVID crisis and inflation factors. What are young people who want to buy a home supposed to do? If you are single, you may continue to live with your parents. If you are married, maybe there is an apartment in your parent’s or a friend’s basement. Some singles are joining together with others, sometimes four or five, to rent a home.

I have also learned of some apartments and condos with as low as 500 square feet that are available to rent or lease.

It has been a dream for many to own a home because they grow in value. With inflation getting under control, I have talked to so-called experts and they tell me prices are not going down. They will still creep up with the short supply. Many home sales find the prices being bid up $10,000 and $20,000 more than the asking price just because of shortage and demand.

A s a result, people aren’t willing to sell. They are staying where they are. When interest rates go back down, that may be another story.

Caught in coin counting

T he other day I took my piggy bank to US Bank where they have a coin counting machine available. There was a sign indicating it was out of order so I inquired when it might be repaired. They said a part was ordered, but they weren’t sure. I innocently asked what happened to it and the staff member said you just won’t believe what we find people are trying to run through the machine. They said it’s not only odd coins, but recently they had teeth caught in it. I never thought of a piggy bank as a place to save teeth. I didn’t know what they meant by this, whether it was a gold-filled one or a child’s tooth that they hadn’t put under their pillow for a reward. I had to try another bank.

Showboat Relocated

I’m sure many of you, like Kathy and I, remember the Minnesota Centennial Showboat docked at St. Paul’s Harriet Island where the University of Minnesota theater group put on productions during the summers. It was fun to go there, the plays were good, and it made for a wonderful evening on the Mississippi River.

A couple weeks ago when we were in Winona with our daughter and son-in-law, Stephanie and Chuck, they took us up the Mississippi River to just below lock 5 where the old showboat is moored at a Wisconsin docking facility. It’s just sitting there.

W hat happened? Well, the U of M theater was able to get a new showboat in December, 2000. The partnership would be with the city of St. Paul Riverfront Development, the Padelford Packet Boat Co. and the University of Minnesota. The construction began the following spring in Greenville, Mississippi. The new showboat arrived at Harriet Island on April 17, 2002. The final curtain call was in the 2016 summer season.

T he William A. Thompson Dredge Museum hoped to raise enough money to purchase the old showboat and Dave Belz and Bob Harris set out to raise funds to buy the boat and transport it from St. Paul to Winona.

T he plan was to have it moored at the new updated Levee Park in Winona and it would be a venue for area arts, culture and events. The showboat arrived in Winona in 2019 and it looks like not enough money was raised to utilize it for that intent. Therefore, it continues to be idled below lock and dam 5. I cannot confirm, but it’s estimated that it cost them $60,000 to purchase it and have it delivered to Winona. Maybe someone will come along and help bring the old showboat back to life.