Atlanta Mortgage Rate Update - 6/12/2006

Little financial news to propel the bond markets last week left Atlanta mortgage rates virtually unchanged. All attention was focused on remarks from Ben Bernanke and the other Fed Governors. Bernanke seems likely to raise short-term interest rates again at the end of this month as he appears to be very concerned about inflation.

Historically, the Fed tends to go too far when increasing rates, especially when there is a new chair. Shortly after taking over in 1987, Greenspan's persistent increasing of the Fed rate is believed to be one of the factors which led to the stock market crash in the fall of 1987.

This week's major news release will come Wednesday morning when the CPI number are published.