In what is traditionally a slow week in the American mortgage industry, evidenced by a fall off in new mortgage applications of over 14 per cent this week, across-the-board Atlanta mortgage rates rose again this week for the third week in a row.
According Bankrate.com’s national survey of large lenders, the 30-year fixed rate mortgage rate rose from last week’s 5.68 per cent to end the year this week at 5.72 per cent. 15-year fixed rate mortgage rates did not fair any better with a similar rise of four basis from last week’s 5.44 per cent to see the year out at 5.48 per cent. Possibly surprising some was the fact that 5-year adjustable rate mortgage rates faired the best this week, only rising three basis points from last week’s 5.52 per cent to end the year at 5.55 per cent. A one basis point rise in Atlanta mortgage rates represents a rise of one percentage point of one percent.
Nonetheless, while the last three weeks of 2006 have not been good for Atlanta mortgage rates, American homeowners will no doubt be feeling much happier with where mortgage rates are today versus where they were just three months ago. Indeed, as a result of the run of declining mortgage rates in the last quarter of 2006, the last quarter of 2006 now has the enviable label of being the quarter in the year that saw the lowest average rate.
In a week where little or no economic news of any note is released, one piece of news that will be bringing a smile to many American homeowners is that the inventory of new houses fell to 6.3 months in November, which compares with new-home inventory of 6.7 months in October. In short, the new-home inventory tells us how long builders can expect to wait to sell a new home on the market and a decline in the new-home inventory rate tells us, rather obviously, that (a) more Americans are purchasing homes, and (b) builders are building less homes. Either way, it signifies that movement is happening in the American housing market and that the lull many are talking about may not be as dramatic as we think it is. This is indeed good news for existing homeowners.
We wish all of our reader a Happy New Year and prosperous 2007.
They say finance goes in cycles and having fallen for six weeks in a row, we now see a second week in a row where Atlanta mortgage rates have taken a hit. Fortunately, according to Bankrate.com’s national survey of large lenders, Atlanta mortgage rates did not suffer the same damage as last week, with only minor cross-the-board rises in mortgage rates.
Bankrate.com’s national survey of large lenders shows 30-year fixed rate mortgage rates as having taken the biggest week-on-week hit, with Atlanta mortgage rates having risen three basis points from last week’s 5.65 percent to this week’s 5.68 percent. 15-year fixed rate mortgage rates saw a minor rise of two basis points week-on-week, from last week’s 5.42 percent to this week’s 5.44 percent. Mirroring the slight rise in the 15-year fixed rate mortgage rates was the 5-year adjustable rate mortgage rates, which rose two basis points from last week 5.50 percent to this week’s 5.52 percent. A one basis point rise in Atlanta mortgage rates represents a rise of one percentage point of one percent.
Year-end is always a good time to take stock of where we are and where we want to be. Many of us decide that the coming new year is the right time to set ourselves new goals, wants, and even resolutions. How many of us, however, also think this might be the right time to reflect on our mortgages and see whether or not our mortgage products are doing the best they can for us? Likely answer to that question is “no”. However, you would be doing yourself a massive disfavor if that were the case as you should always be reviewing whether or not your mortgage is still working for you. Just because you signed up for a 30-year fixed rate mortgage rate when you purchased your property doesn't mean you still need to be tied into now. Likewise, if you are in a 5-year adjustable rate mortgage rate deal now and are afraid rising mortgage rates are going to have an adverse affect on you on the short to medium term, now is the right time to be rethinking your mortgage rate needs and possibly refinancing. Whatever else your doing this week, however, we very much hope our readers are having a wonderfully merry and joyful Christmas holiday.
As predicted, the recent release of better than expected employment figures causing the 10-year treasury Note to reverse its recent downward trend last week was an indicator that Atlanta mortgage rates were likely to reverse their recent run of downward trends. And so it has come to pass.
According to Bankrate.com’s national survey of large lenders, Atlanta mortgage rates saw a bounce-back this week to end up higher across the board than the previous week. Hardest hit by this week’s rise in mortgage interest rates were 5-year adjustable rate mortgage rates, which saw a week-on-week climb of eight basis points from last week’s record low of 5.39 percent to this week’s 5.47 percent.
However, fixed rate mortgage rates were not left unaffected by the rise in Atlanta mortgage rates this week, with the 15-year fixed rate mortgage rate jumping six bases points from last week’s 5.34 percent to this week’s 5.40 percent and the 30-year fixed rate mortgage rate rising by five basis points from last week’s 5.58 percent to 5.63 percent. A fall of one basis point represents one percentage point of one percent.
Although a number of American homeowners will be disappointed to have seen the change over the last week in the recent run of reducing home mortgage lending rates, there’s a silver-lining in every dark cloud and American homeowners are not exempt here. On the one hand, the record numbers of American homeowners were watching the rate falls and, when needed, were jumping ship out of 5-year adjustable rate mortgage rates and into 30 and 15-year fixed rate mortgage rates. As such, the number of American homeowners directly affected by this week’s eight basis point rise in 5-year ARMs would have been significantly lower than would otherwise have been the case a month or so ago. On the other hand, a number of industry analysts believe this week’s rise in Atlanta mortgage rates is merely a correction of the recent run of good reductions in Atlanta mortgage rates and that further falls in Atlanta mortgage rates may well happen before the year is out.
According to Bankrate.com’s national survey of large lenders, American homeowners are once again enjoying the festive season as Atlanta mortgage rates fell for yet another week to end at not only year lows, but their lowest levels since October 2005!
Atlanta mortgage rates tumbled across the board last week, with 15-year fixed rate mortgage rates since the most dramatic week-on-week fall of 7 basis points from last week’s already year low of 5.42 per. cent. to set yet another benchmark low this week of 5.35 per. cent. Following close behind, however, where 30-year fixed rate mortgage rates and 5-year adjustable rate mortgage rates, which both saw drops of 6 basis points to end the week at 5.59 per. cent. and 5.41 per. cent., respectively. A fall of one basis point represents one percentage point of one percent.
Although American homeowners are enjoying a record run of Atlanta mortgage rate falls since their mid-year highs, the recent rise in the number of mortgage applications in the US has more to do with a mini explosion in refinance applications than it does with new mortgage applications. Record low long-term Atlanta mortgage rates currently seen in the 30-year fixed rate mortgage rates and 15-year fixed rate mortgage rates traditionally make those with relatively short-term 5-year adjustable rate mortgages think twice about jumping ship and looking to refinance over a longer-term. However, with this week’s release of better than expected employment figures in the US causing the 10-year Treasury Note, an underlying indicator of where Atlanta mortgage rates may be going in the near future, to reverse its recent downward trend this week, large numbers of American homeowners with 5-year ARMs are no longer electing to hold out for another week of good Atlanta mortgage rate news and are electing to move over while they can still get their hands on the best long-term fixed Atlanta mortgage rate deals being offered for the year to-date.
Thanksgiving is over, but American homeowners once again have a lot to be thankful for as Atlanta mortgage rates saw yet another week of relatively large cross-the-board falls in interest rates.
According to Bankrate.com’s national survey of large lenders, Atlanta mortgage rates fell to all time 10-month lows this week. Unlike weeks of past, however, the fall in home mortgage interest rates were the same cross-the-board. 30-year fixed rate mortgage rates continued their good recent performance with rates falling for the fifth week in a row from last week’s 5.71% to this week’s 5.66%. 15-year fixed rate mortgage rates also continued their recent downward spiral from last week’s rate of 5.48% to this week’s 5.43%. Keeping up with the falls in fixed rate mortgage rates, the 5-year adjustable rate mortgage rate also fell from last week’s 5.53% to this week’s 5.48%. This represents collective cross-the-board falls in Atlanta mortgage rates of five basis points each, where one basis point equals one percentage point of one percent.
For those with 5-year adjustable rate mortgage rates, the fall in advertised 5-year ARMs must have been especially pleasing given the number of American homeowners who have recently been electing to refinance out of adjustable rate mortgages and jump ship to a fixed rate mortgage rate while fixed rate mortgage rates are at near year lows. Those homeowners with adjustable rate mortgages must be delighted they decided to hold fire, but may also be wondering whether or now is the time to jump ship and refinance into a fixed rate mortgage.
Many a mortgage lender, financier and economist will be sitting around scratching their heads wondering how this long run of bull news is continuing to come about in the American home mortgage rate market at the moment. Clearly not everyone has their act together, as economic news relating to the US housing market this week could probably be best summed-up as “confusing”. Depending on who you listen to, existing home sales went up or down in October. House prices for resales were down, but new house prices were up. Wages fell, but the economy grew stronger. Inflation was in-check. Regardless, American homeowners will be driving home this week with a smile on their face knowing that once again, US home mortgage rates were down! The only question on everyone’s lips now: will the good news continue through the Holiday Season to year-end? We can only hope so.
