Weekly Rate Update - 4/3/2006

Atlanta mortgage rates were up about 0.125% last week after new Fed Chairman Bernanke flexed his muscle for the first time. This move was expected, however, Bernanke's comments regarding Atlanta mortgage rates were up about 0.125% last week after new Fed Chairman Bernanke flexed his muscle for the first time. This move was expected, however, Bernanke's comments regarding the possibility of future hikes came a something of a surprise. It seems some of the economic news over the past 6 weeks since the prior meeting of the Fed has let the board to worry that our economy may be continuing to heat up despite their efforts to cool it off.

The coming week's big release will be Friday's job numbers report. A healthy increase in the number of jobs could indicate further trouble for the bond market. If investors take the job numbers as a sign the economy is contuing to expand, this could mean investors will move more money over from their bond investments to stocks. This causes the bond prices to fall and in turn an increase in yield. That spells higher interest rates for homeowners.