Mortgage Rates This Week : April 11, 2011

Georgia Mortgage markets worsened last week in as energy costs remained high, and jobs data looked strong. The previous safe haven buying that characterized the March mortgage market has subsided.
it's driving mortgage rates higher across Georgia.
Conforming and FHA mortgage rates rolled back 8 weeks worth of improvements last week and are now back to mid-February levels. The rise in rates is really hurting refinance activity and home affordability.
One of the  biggest stories from last week figures to carry forward into this one -- the Federal Reserve's take on inflation.
In the minutes from its March meeting, the FOMC was shown to have discussed the possibility of raising the Fed Funds Rate ahead of schedule, and to be watching near-inflation closely. Both developments are in response to a growing economy with rising price pressures.
Mortgage rate shoppers should take note.
Inflation maybe the real killer..now. When inflation is present in the economy, all things equal, mortgage rates rise. Sometimes by a lot. And, usually, just the expectation of inflation is all it takes to make mortgage rates jump. Remember rates fall like feathers and rise like Rockets!
That's what we saw last week.
This week, keep a close watch on new inflation-related data set for release. This includes Tuesday's Retail Sales data, Wednesday's Producer Price Index, and Thursday's Consumer Price Index. Each release can potentially move mortgage rates although, if recent trends are an indication, expect for rates to rise.
Mortgage rates in Atlanta remain historically low.

We advise keeping a close eye on locking in your rate in as soon as possible!

Thanks,

Peter Bright,  NMLS, 167540, GRMA, 247926

Manager

404-643-4793 Direct

(770) 217-4574  Efax

See my Blog at http://www.IM4that.com

THOUGHT OF THE WEEK  "Accentuate the positive, eliminate the negative, latch on to the affirmative. "

Capital City Mortgage Investments, Inc. Serving Georgia since 1994!

1420 Lockhart Dr. Suite 104

Kennesaw, GA 30144

Georgia Mortgage Residential Licensee,LENDER License #164510  and #7064

Licensed by the Georgia Department of Banking and Finance.

www.ATLRATES.com