Atlanta mortgage rates experienced yet another roller coaster week. This time, however, American homeowners end the week with more of a good feel factor – for the first time in two months Atlanta mortgage rates fell. Although the cross the board fall in Atlanta mortgage rates in the past week may not look much when stacked against the significant jumps over the past seven weeks, according to Bankrate.com’s national survey of large lenders both 30-year and 15-year fixed rate mortgage rates fell eight basis points week-on-week and 5-year adjustable rate mortgage rates faired even better, falling nine basis points. In any given week, these are fairly impressive figures and should be read as such, regardless of the recent increases. Accordingly, Bankrate.com’s national survey of large lenders has 30-year fixed rate mortgage rates at 6.76 per cent, 15-year fixed rate mortgage rates at 6.45 per cent and 5-year adjustable rate mortgage rates at 6.58 per cent, respectively, this weekend. A one basis point reduction is equal to a fall of one hundredth of one percentage point.
Overall, Atlanta mortgage rates have seen a half per cent rise in the last month alone. Four weeks ago we were talking about 15-year fixed rate mortgage rates in the six per cent zone. Today this rate is 6.57 per cent. Some may be wondering what is the root cause behind what is nothing less than a ride on the interest rate skyrocket. However, American homeowners should keep in mind that rises of this nature, while not overly common, are not unprecedented. Indeed, they’re not even unprecedented within this century. Only as recently as August 2003 the 30-year fixed rate mortgage rate went through a period of four weeks when it rose an amazing eighty two basis points. However, if you’re looking for that magic silver lining, it’s also worth noting that in nearly all cases where there has been some form of dramatic rise in Atlanta mortgage rates, there has been an equal period when the pendulum of Atlanta mortgage rates has swung the other way, with a rapid reduction in Atlanta mortgage rates as they re-align themselves. One is ever hopeful that this is exactly what will happen in the coming few days and weeks.
The more important question, however, is what effect is this having on home mortgage applications? Surely a rapid increase in Atlanta mortgage rates would effect a reduction in home mortgage applications. Or so you would think. However, according to figures of the Mortgage Broker’s Association, home mortgage applications actually rose six per cent in the last week – and that’s despite the double-digit basis point rises in Atlanta mortgage rates. Without doubt some of these will be homeowners with 5-year adjustable rate mortgage rates, looking to fix their Atlanta mortgage rates before the bloodbath gets any worse, but there will also be a certain percentage of new homeowner mortgage applications in there, which goes to show that while interest rates may be rising, the fundamentals of the housing market are still sound. All we have to wait for now it that much anticipate re-alignment of Atlanta home mortgage rates.
Seven weeks and counting – that’s how long this wave of increasing Atlanta mortgage rates has now been going on for. American homeowners had to sit back and experience another week of near record increases in Atlanta mortgage rates across the board. According to Bankrate.com’s national survey of large lenders, the 30-year fixed rate mortgage rate saw a twenty three basis point jump week-on-week to end the week at 6.84 per cent, its highest level this year so far. 15-year fixed rate mortgage rates didn’t avoid the fallout, rising twenty basis points from last week to end the week at 6.53 per cent. 5-year adjustable rate mortgage rates faired the best over the course of the last week, rising a mere fifteen basis point and ending the week 6.67 per cent. A one basis point rise equates to a rise of one hundredth of one percentage point.
Many American homeowners may be wondering what they have done that’s so wrong they’ve now experienced six consecutive weekly rises in Atlanta mortgage rates? Indeed, not only have Atlanta mortgage rates been steadily increasing, but according to Bankrate.com’s national survey of large lenders, the 15-year fixed rate mortgage rate has seen a 0.33 per cent rise in as short as six weeks.
Before we all rush off in panic mode however, let’s pause for a second. Anyone who takes a close look at where Atlanta mortgage rates are today and has a quick glance at the 10-year Treasury will notice a startling comparative. Both are now showing 10-month highs. That’s right, over the past two weeks the 10-year Treasury has risen 4.93 per cent to end this week at just fractionally lower than five per cent. The rise in the 10-year Treasury has largely been credited to a new inflation warning issued by the Fed Chairman, Ben Bernanke. As such, rather been overly concerned with where Atlanta mortgage rates are, American homeowners should be glad to see that the fundamentals of movements in Atlanta mortgage rates remain strong – there is a direct correlation between bond yields and Atlanta mortgage rates. All we need now is for the markets to receive some welcome economic data that will take the shine off bond yields and put the gloss back on stock investments and we’ll all see a happy return to falling Atlanta mortgage rates.
If the past five weeks have been unpleasant for American homeowners, then the past week has been particularly hard felt. According to Bankrate.com’s national survey of large lenders, Atlanta mortgage rates rose for the sixth straight week to end the week at new 10-month highs. Bankrate.com’s national survey of large lenders recorded a fourteen basis point week-on-week rise for the benchmark 30-year fixed rate mortgage rate, which ended the week at 6.61 per cent. Slightly less affected was the 15-year fixed rate mortgage rate, which saw a twelve basis point week-on-week rises to end the week at 6.33 per cent. Once again, however, 5-year adjustable rate mortgage rates were the hardest hit insofar as week-on-week rises go, climbing fifteen basis points in the past week to end the week at 6.52 per cent. A single point rise in basis points is equal to a rise of one hundredth of one percentage point.
Although the first part of this year saw Atlanta mortgage rates moving within a very narrow range, increases in Atlanta mortgage rates over the past two week may well have many Atlanta homeowners with adjustable rate mortgages wondering whether or not it is not too late to swap their adjustable rate mortgages for fixed rate mortgages. With US economy indicators suggesting the economy is growing slower than hoped, and with the Federal Reserve showing no signs that it is about to reduce interest rates, many analysts are now predicting that in the remainder of 2007 Atlanta mortgage rates are going one way – up! A question arises then as to whether now would be a good time to jump ship and move into fixed rate mortgages. The fact is, six weeks ago might have been a more ideal time to think of moving out of an adjustable rate mortgage and into a fixed rate mortgage. However, if you believe that there are some real savings to be made by moving into a fixed rate mortgage today, then this would certainly be something worthy of consideration. Nevertheless, there are a number of additional factors you would need to consider when deciding whether or not to have a fixed rate Atlanta mortgage rate or an adjustable rate Atlanta mortgage rate beyond the mere headline rates shown from Bankrate.com’s national survey of large lenders. Despite this, nine increases in eleven weeks do evidence more than a mere trend, so if you are thinking about converting to a fixed rate mortgage, you may not wish to think about it for too much longer.
American homeowners saw Atlanta mortgage rates rise for the ninth time in eleven weeks, and for the fifth straight week running. According to Bankrate.com’s national survey of large lenders, 30-year fixed rate mortgage rates rose five basis points over the past week to end the week at 6.47 per cent. Likewise, 5-year adjustable rate mortgage rates rose five basis points week-on-week to end this week at 6.32 per cent. A one basis point increase is the equivalent of an increase of one-hundredth of one percentage point. However, according to Bankrate.com’s national survey of large lenders, 15-year fixed rate mortgage rates saw the largest week-on-week rise, with a rise of six basis points seeing 15-year fixed rate mortgage rates at 6.15 per cent. As little as three weeks ago 15-year fixed rate mortgage rates were 6 per cent. This now means that 5-year adjustable mortgage rates are at their highest level since August 2006.
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.
