Atlanta Mortgage Rate Update - 5/1/2006

Rates ended last week basically unchanged. The week started off with some good news for the real estate market and potentially bad news for mortgage rates. Both existing and new home sales numbers came in above expectations and well above the expectations of the media. The press continues to beat the real estate bubble drum, but there is just no evidence to back it up. This caused a slight increase in rates until the fed news later in the week dropped rates to their earlier levels. The Fed appears to be set to "pause" interest rate hikes after the hike next week which is expected to be 1/4 point.

This week starts and ends with some important numbers being released. Monday is the personal finance numbers including personal income and personal spending. Friday is the jobs report including the latest unemployment numbers. Both of these releases will have a high impact on the bond markets.