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!
Peter Bright, NMLS, 167540, GRMA, 247926
(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.