Mortgage Rate Trends for the week 06/29/2007

Good news for American homeowners as Atlanta mortgage rates fell for the second week in a row this week.  Another week of reductions and we will be at the start of an official trend in falling Atlanta mortgage rates.  According to Bankrate.com’s national survey of large lenders, the benchmark 30-year fixed rate mortgage rate fell two basis points this week, to end the week at 6.74 per cent.  15-year fixed rate mortgage rates fared better, falling five basis points to end the week at 6.40 per cent.  A basis point is one hundredth of one percentage point.  By far the best recovery in the realm of Atlanta mortgage rates this week, however, was felt by those with 5-year adjustable rate mortgage rates, which saw a double-digit eleven basis point week-on-week reduction to see out the week at 6.47 per cent.  You may be wondering why 5-year adjustable rate mortgage rates fared much better than the 30 and 15-year fixed rate mortgage rates over the course of the past week.  While there is no easy answer to that question, many do feel that the tightening up of the sub-prime sector has helped to resort a certain level of confidence in 5-year adjustable rate mortgage rates, which are probably more accurately reflecting true market rates this week than at any other time during the course of this year.