Alpharetta Cumming Lake Lanier Real Estate Blog

Mortgage markets worsened last week as the U.S. dollar gave up ground in currency markets, and inflation concerns mounted. In response to the events, conforming mortgage rates rose for the third straight week.

Mortgage rates have now climbed by as much as half-percent since the start of the month, and Freddie Mac reports average loan fees to be higher, too. The 7-month rally in rates may be nearing its end. The 30-year fixed rate mortgage is at a 4-month high after reaching an all-time low just 3 weeks ago.

The abrupt change in rates makes for an interesting study in expectations, and how they can influence a market. Remember, inflation is bad for mortgage rates. Inflation devalues the dollar which, as a consequence, devalues repayments made to mortgage bond holders. As a result, when inflation is present, mortgage bonds tend to sell-off which causes mortgage rates to rise. This is what's been happening these past 3 weeks. However, we're not in an inflationary environment. To the contrary:
1.The Federal Reserve has said inflation is too low to be economically healthy
2.Last week, the Cost of Living posted its lowest year-over-year gain in history

But mortgage rates are rising anyway. This is because global investors believe the Fed's most recent market intervention - a $600 billion bond purchase program - will later lead to inflation. Just on the expectation, markets are behaving like inflation is already here.

This week is holiday-shortened, and rates should remain volatile. There's a bevy of data including the Existing and New Home Sales reports, consumer confidence data, and the FOMC Minutes from the November 3 meeting.

If you haven't made a decision on what house to buy, now is the time to consider making that decision and locking in a mortgage rate as well.

Rates have farther to climb than the fall. Call Mike and Melody today!

Labels: alpharetta homes for sale, homes for sale in cumming, interest rates

Labels: 15 year fixed, 30 year fixed, covenant mortgage, FHA, home loans, interest rates, mortgage rates, real estate, vanderhoff

Labels: 15 year fixed, 30 year fixed, covenant mortgage, FHA, home loans, interest rates, mortgage rates, real estate, vanderhoff

Labels: 15 year fixed, 30 year fixed, covenant mortgage, FHA, interest rates, mortgage rates, rates, real estate, vanderhoff

Labels: 15 year fixed, 30 year fixed, covenant mortgage, FHA, interest rates, mortgage rates, real estate, vanderhoff

Labels: 15 year fixed, 30 year fixed, covenant mortgage, FHA, home loans, interest rates, mortgage rates, rates, real estate, vanderhoff

Labels: 15 year fixed, 30 year fixed, covenant mortgage, FHA, home loans, interest rates, jumbo loan, mortgage rates, real estate, vanderhoff

Labels: 15 year fixed, 30 year fixed, covenant mortgage, FHA, interest rates, mortgage rates, real estate, vanderhoff

Labels: 15 year fixed, 30 year fixed, covenant mortgage, FHA, interest rates, mortgage rates, rates, real estate, vanderhoff

Labels: 15 year fixed, 30 year fixed, covenant mortgage, FHA, interest rates, mortgage, rates, real estate, vanderhoff

Labels: 15 year fixed, 30 year fixed, covenant mortgage, FHA, interest rates, mortgage, real estate, vanderhoff

Check out this weekend's mortgage rates provided by Covenant Mortgage Corporation:

Conforming Loans: Loan amounts $417,000 & under*
30-yr Fixed = 4.625% Purchase Only
15-yr Fixed = 4.375% Purchase Only
Consult your Covenant Mortgage Professional for Refinance Quotes

Jumbo Loans: Loan amounts over $417,000*
15-yr Fixed = 5.75%
5/1 ARM = 5.125%
7/1 ARM =5.375%

FHA Loans:
30-yr Fixed = Range 4.875% - 5.50%

*Based on pricing as of Friday, 3/27/09 at 1:00PM.

If you would like help with your next real estate transaction, please contact our team at Vanderhoff Real Estate today. We can be your bridge to success!

Labels: 15 year fixed, 30 year fixed, covenant mortgage, FHA, interest rates, mortgage rates, refinance, vanderhoff real estate

Check out this weekend's mortgage rates provided by Covenant Mortgage Corporation:

Conforming Loans: Loan amounts $417,000 & under*
30-yr Fixed = 4.875%
15-yr Fixed = 4.50%

Jumbo Loans: Loan amounts over $417,000*
15-yr Fixed = 5.75%
5/1 ARM = 4.75%
7/1 ARM =5.00%

FHA Loans:
30-yr Fixed = Range 5.00% - 5.50%

*Based on pricing as of Thursday, 3/13/09 at 1:00PM.

If you would like help with your next real estate transaction, please contact our team at Vanderhoff Real Estate today. We can be your bridge to success!

Labels: 15 year fixed, 30 year fixed, covenant mortgage, FHA, interest rates, mortgage rates, vanderhoff real estate