Lots of mortgage loan analysts and experts are scratching their heads this week wondering why we saw such a large spike in Atlanta mortgage rates in past seven days. The honest answer is that nobody is exactly sure why. Normally a spike of this nature in Atlanta mortgage rates is preceded by a sudden sell-off by institutional investors in bonds and a move in stocks. However, this time round, no significant sell-off has occurred. The other underlying reason could be that experts see home ownership and buying as in decline. And while it is true that there was a fall off in buying and selling of homes in America in the first three months of this year, it certainly wasn’t enough to warrant seeing the level of spike in Atlanta mortgage rates we experienced this week. So, the short answer is that nobody is exactly sure why we saw such a sudden spike in Atlanta mortgage rates this past week, but we can only hope that we see a like decline in the next seven days.
American homeowners were faced with a nasty shock this week: Atlanta mortgage rates spiked to such an extent it set Atlanta mortgage rates back to the last week of January. Not since the last week of January have Atlanta mortgage rates been this high, with American homeowners having become complacent seeing mortgage rates move within a very narrow band for the best part of six months. Now, according to Bankrate.com’s national survey of large lenders, that comfort has come to an abrupt end!
According to Bankrate.com’s national survey of large lenders, the 30-year fixed rate mortgage rate saw a ten basis point jump over the last week to end this week at 6.42 per cent. Likewise, 15-year fixed rate mortgage rates also saw a ten basis point jump to end the week at 6.15 per cent. Probably because it has fared worst over the past few weeks, the 5-year adjustable rate mortgage rate saw the smallest week-on-week rise this week, climbing by eight basis points to end the week at 6.32 per cent. In any other week this year so far, however, a spike of eight basis points would have been a clear winner for highest climber that week. A rise of one basis point is equal to a rise of one hundredth of one percentage point.
While Atlanta mortgage rates have stayed within a fairly narrow range over the last five months or so, rumblings are around that a depressed housing market is going to work its way through to reflect in higher Atlanta home mortgage interest rates.
While it is true that the new home market has not moved very much this year, the re-finance sector has helped to keep the mortgage market turning over. Figures out last week, however, show a 6.6 per cent fall in existing home sales and this has analysts concerned that the home property market is in more of a quagmire than previous thought.
Keep in mind, however, that the Atlanta mortgage rate market has been full of rumor rumblings so far this year, none so more voice-full than with the state of the sub-prime home mortgage industry, and yet Atlanta mortgage rates have stayed robust moving within a very narrow range of numbers. This could well be the case for the remainder of this quarter and it is highly unlikely we will start to see any significant movement in the direction of Atlanta mortgage rates until some time during the third quarter.
The direction in which Atlanta mortgage rates are likely to be moving in baffled experts across the nation once again this week. While American homeowners will now be getting used to the tight region that Atlanta mortgage rates have moved in year to date, how long it’ll last is another question altogether.
Bankrate.com’s national survey of large lenders reported the 30-year fixed rate mortgage rate at 6.32 per cent for this week. That’s a slight rise of three basis points. 15-year fixed rate mortgage rates also saw a slight rise week-on-week, of five basis points, to end the week at 6.05 per cent, the first time that 15-year fixed rate mortgage rates have been over the crucial threshold of 6.00 per cent for some weeks. 5-year adjustable rate mortgage rates, however, once again saw the biggest hit on weekly numbers, with a rise of eight basis points to end the week at 6.24 per cent. A rise of one basis point equates a rise of one hundredth of one percentage point.While all three major products of Atlanta mortgage rates saw a rise this week, it’s worth noting that 30-year fixed rate mortgage rates have not been over 6.32 per cent this year so far and have not been lower than 6.24 per cent. All in all, year to date Atlanta mortgage rates would evidence this year as being one of the tightest mortgage rate ranging on record.
Prime lenders who were fortunate enough to fix there 5-year adjustable mortgage rate in the 3-4 percent mark are now finding that a prolonged period of low long term Atlanta mortgage rates is making these long term home mortgage rates look extremely attractive. Net result is that more than a few American homeowners are now refinancing their relatively short term 5-year adjustable rate mortgages as more long term 15-year and 30-year fixed rate mortgages. The fact that the 15-year fixed rate mortgage rate is still hovering around the 6.00 percent mark is certainly attracting more than a little attention from those American homeowners with 5-year adjustable rate mortgages. Especially since the behavior of 5-year adjustable rate mortgages are acting true to their name and adjusting themselves, although only marginally, weekly. Given that the overall outlook for Atlanta mortgage rates is to experience much the same as we have seen year-to-date, it is likely that yet more Atlanta homeowners with 5-year adjustable rate mortgages will jump over the fence and refinance into 15-year fixed rate mortgages in the near future.
Once again American homeowners have experienced a week in which Atlanta mortgage rates have been relatively static. According to Bankrate.com’s national survey of large lenders, 30-year fixed rate mortgage rates rose by as little as one basis point in the past week to end the week at 6.29 per cent. 15-year fixed rate mortgage rates did not move at all to stay at 6.00 per cent. 5-year adjustable rate mortgage rates did see some slight movement, rising three basis points to end the week at 6.16 per cent. A one basis point rise equates to an increase in Atlanta mortgage rates of one hundredth of one percentage point.
All in, the year so far as has seen Atlanta mortgage rates move within a very narrow corridor. 30-year fixed rate mortgage rates have not risen above 6.5 per cent. all year, nor have they fallen below 6.00 per cent. While not unheard of, it is uncommon for Atlanta mortgage rates to experience such a prolonged period in which home mortgage rates stay within such a narrow band. Expectations, however, are that we are likely to see more of the same in the near future.
Even though 5-year adjustable rate mortgage rates have not experienced the expected crash following the rumblings in the sub-prime mortgage industry, American homeowners appear to be voting with their feet and jumping ship into longer term fixed rate mortgages by the droves in recent weeks. Less than one in five home mortgage application in the last week were for adjustable rate mortgages. However, given the low rate of Atlanta fixed rate mortgages available at the moment, added with concerns emanating from the sub-prime mortgage sector, it is little wonder that many prime rate mortgage lenders are taking advantage of these low fixed rate mortgages and electing not to apply for adjustable rate mortgages. The only real question is whether or not the trend will continue, or whether we will see some action in the next few days or weeks that will pull fixed rate mortgage rates out of their current slumber zones?
With little significant financial economic news being reported this week, Atlanta mortgage rates did not see any significant movement over the past seven days. According to Bankrate.com’s national survey of large lenders, 30-year fixed rate mortgage rates gained one basis point during the week to end the week at 6.28 per cent. 15-year fixed rate mortgage rates saw a similar week-on-week increase of one basis point to end the week at 6.00 per cent. 5-year adjustable rate mortgage rates likewise rose by one basis point to end the week at 6.13 per cent. A basis point is one hundredth of one percentage point (0.01 per cent). Having said that Atlanta mortgage rates saw out a relatively flat week this week, homeowners should expect to see some movement in Atlanta mortgage rates over the coming week with the release of some more weighty economic data that analysts have long been expecting.
