Mortgage Rate Trends for the week 06/07/2007

In what is traditionally a slow holiday week, American homeowners will no doubt be glad for the rest from the recent roller coaster ride in Atlanta mortgage rates.  According to Bankrate.com’s national survey of large lenders, this week was flat insofar as any movements in Atlanta mortgage rates was concerned.  3-year fixed rate mortgage rates remain dead-pan week-on-week at 6.74 per cent.  15-year fixed rate mortgage rates saw a slight adjustment, rising by one basis point to 6.41 per cent this week.  Likewise, 5-year adjustable rate mortgage rates also rose one basis point to 6.48 per cent this week.  A basis point rise is equal to a rise of one hundredth of one percentage point.

Until two months ago, these had been the typically tight bands in which Atlanta mortgage rates had been moving week-on-week so far this year.  Obviously, recent trends have told a different story, but there’s hope that the lull of this week might precede another round of tight interest rate changes in the next few weeks and months. Additional hopes of this might have been felt following the decision by the rating setting committee of the Federal Reserve last week to keep short-term rates unchanged.  Obviously the Federal Reserve doesn’t set Atlanta mortgage rates, but a combined message of inflation being under control along with a recent move into safe US treasury and bonds following the failed terrorist attacks in Britain last year have lead to a driving down of bond interest rates, which do have more of an affect on our Atlanta mortgage rates.