Atlanta Mortgage Rate Update - 7/3/2006
07/03/2006
Good news dropped interest rates slightly last week overall. The Fed's meeting went as expected with an increase of 25 basis points (0.25%) on the short term lending target. However, the wording from the meeting was one which indicated that the Fed was seeing a reduced risk of inflation. This caused a rally in the bond market and a slight improvement in interest rates for the first time in several weeks.
Additionally, new and existing home sales numbers were released showing better than expected numbers. Inventory was down from the previous report, and the most interesting number was that housing prices nationwide are up 6% year over year. Where's that housing bubble we've been hearing about for the last 4 years? I guess the press figures that if they keep reporting it long enough, they'll be right eventually.
This week will be a slow one. That is until Friday when the big jobs report numbers come out. Despite this recent downtick in interest rates, we continue to maintain a lock ASAP policy here at Primacy Mortgage. We advise against going into Friday's report with a floating loan.