Mortgage Rate Update – April 20, 2009

Welcome back!

It’s time for another Atlanta mortgage rate update. If you’re in the market for a new Atlanta home, then you definitely want to keep an eye on interest rates, what’s effecting and where they might be headed. While we’re not seeing a huge movement in rates, we have seen a lot of volatility within each week. And while you don’t typically see a drastic swing in rates in one week, rates have moved pretty dramatically over a 2-3 week period.

The week in review:

Home loan rates remained unchanged this last week after receiving a couple economic reports that inflation appears to be in check for the moment. Interest rates continue to hover at historic lows. But, how long will it last?

What to expect:

There are several economic reports due out at the end of the week but none are generally market movers. It is earnings season and we’ll get earnings reports and future guidance from some major companies this week. Remember: Weak economic news generally translates into lower home loan rates. So, we could see some swings throughout the week.

On a longer term horizon, we have unprecedented stimulus and spending going on. The market is closely watching for signs of improvement and, more importantly, heating up inflation. Once those signs are evident, expect rates to move up rather quickly.

Breg-ometer:

Next 7 days: Rates should stay in the same range
Next 30 days: Rates once again should be in the same range
Next 90 days: Will signs of economic recovery be evident?

Courtesy of:

Bob Bregitzer