Atlanta Mortgage Rate Update - 8/21/2006

For the 4th straight week mortgage rates have fallen. This has provided us with an excellent opportunity to get folks out of those 5/1 and 3/1 ARMs from 2002 and 2003 which are either adjusting now or about to adjust. The benchmark 30 year mortgage rates dropped about 0.06%. However, rates are still up about 0.60% above what they were this time 1 year ago.

The 30 year mortgage is now at it's lowest level since April. This week's drop was in response to the cease fire in Israel and the Fed's decision to keep short-term interest rates unchanged. Additionally, the PPI fell in July indicating that perhaps the Fed will not need to continue tightening the money supply.