Mortgage rate up for the 8th Straight Day... NOW 9 days!

By
Real Estate Services with Capital City Mortgage Investments, Inc Since 1994

Mortgage Rates Rise For The 7th Straight Day

Mortgage rates risingMortgage markets worsened for the 7th straight day Tuesday, equaling the longest losing streak of the last 5 years.

Conventional, 30-year fixed mortgage rates are now scratching 5 percent, with FHA mortgage rates running roughly the same.

This is a huge increase from just 11 weeks ago when mortgage rates were riding an 8-month-long hot streak, and appeared headed into the 3s. Then the Federal Reserve intervened.

On November 3, as additional support for markets, the Fed announced its second round of bond buys, a $600 billion program dubbed QEII -- short for Quantitative Easing, Round II. Wall Street got spooked on the news; investors feared runaway inflation.

That's when low rates ended. Here's why:

(A) Inflation makes the U.S. dollar lose its value,

And, (B) U.S. mortgage bond payments are paid in U.S. dollars.

Therefore, (C) Inflation makes mortgage bond repayments lose their value.

When mortgage bond repayments are worth less, bond demand falls among the global investor set and that causes bond prices to fall along with it. When bond prices fall, mortgage rates rise and that's exactly what we're seeing right now.

Since the Fed's QEII announcement, mortgage rates have soared and home affordability is taking a hit.

Given recent trends, it's probably safe to declare the Refi Boom is comin to an end and the era of low mortgage rates  under 5% may be over, too.  Home prices may move up or down in Atlanta this year, but rising mortgage rates could render the point moot. If you're looking for a great "deal" with low, long-term payments, the time to get in contract may be now.

Because of rising rates, homeowners have lost roughly 10% of their purchasing power since November.

Posted by

Thanks,

Peter


404-643-4793

 

Providing financing for cities across Georgia including: Acworth, Albany, Alpharetta, Athens, Atlanta, Augusta, Austell, Avondale Estates, Blairsville, Bloomingdale, Blue Ridge, Bogart, Brunswick, Buckhead, Buford, Canton, Carrollton, Cartersville, Chatsworth, Clayton, College Park, Columbus, Commerce, Conyers, Covington, Cumming, Dahlonega,  Dacula, Dalton, Dawsonville, Decatur, Doraville, Douglasville, Duluth, Dunwoody, East Point, Fayetteville, Flowery Branch, Gainesville, Greensboro, Hampton,  Hapeville, Hinesville, Hiram, Jackson, Jefferson, Jonesboro, Kennesaw, Lagrange, Lawrenceville, Lilburn, Lithia Springs, Macon, Madison, Metter, Morganton, Morrow, Newnan, Norcross, Oakwood, Peachtree City, Pooler, Richmond Hill, Riverdale, Rome, Roswell, Sandy Springs, Savannah, Scottdale, Statesboro, Stockbridge, Stone Mountain, St Marys, Sugar Hill, Suwanee, Thomasville, Thunderbolt, Tucker, Tybee Island, Valdosta, Waleska, Warner Robins, Waycross, Wilmington Island, Winder, Woodstock, and many more.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the camera to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Location:
Georgia
Tags:
best lowest georgia fayette fulton gwinnett county mortgage jumbo fixed arm rates fha va usda home price bankrate lowermybills lendingtree

Comments 4 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the magnifying-glass to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainer
104,061
John Durham
MS, MS, ASP, ARS
Durham Executive Group - RE/MAX/Results

Peter,

I too have been monitoring the rising interest rates. While still great interest rates from a historical perspective at or around 5 % for a 30-year conventional should rates continue to climb it will only make for an even more interesting housing market.

February 10, 2011 07:15 AM
Rainmaker
1,752,985
Gita Bantwal
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel
RE/MAX Centre Realtors

Thank you for the information.I hope rates will not increase this week,

February 10, 2011 07:15 AM
Rainer
129,434
John Combs
Alan Deblat Real Estate Corp.

I have also noticed the rising rates. I can only hope that they don't jump too high.

February 10, 2011 07:17 AM
Rainer
18,929
Peter Bright
404-643-4793
Capital City Mortgage Investments, Inc Since 1994

Hopefully the home buyers will notice!

February 14, 2011 08:23 AM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the car to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainer
18,929

Peter Bright

404-643-4793
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the printer to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information

Mortgage Rates Georgia Cobb County Gwinnett Fulton Breaking News