We realize that many of you in the Smyrna Vinings area are in the process of purchasing a new home, thinking about purchasing a new home or just mulling over the idea. We thought it would be helpful to bring in a guest columnist to provide you with weekly mortgage rate updates.
So we’ve asked Bob Bregitzer with Innovative Mortgage Solutions to provide you with a quick weekly update. Bob has been in the mortgage industry for over 10 years and is also a Certified Public Accountant, which means he has a lot of experience and a strong financial background.
So without further adieu, here is the Mortgage Rate Update for the Week of July 21, 2008.
Week in review:
My clients sometimes tell me that watching mortgage rates is like watching an out of control roller coaster. While I feel the same way, this past week felt more like watching a cannonball being shot out of a cannon straight into the air.
It’s been a rough week for home loan rates. The week started out with several economic reports showing inflation is still high and a concern for the Fed. Inflation is the enemy of mortgage rates, high inflation causes higher rates. Overall, rates increased by about .375% from the beginning of the week.
What to expect:
Home loan rates are as high as we have seen in a year, just about matching the high mark from July 2007. Although there are no inflation reports this week, inflation concerns will continue to weigh on the financial markets and mortgage rates. If the stock market continues its rally from last week, expect rates to get worse.
For rates to reverse the trend, there needs to a catalyst. Economic reports this week are expected to show weakness and may offset the effects of inflation on rates. If those reports are much worse than expectations, we could see a reversal.
Breg-ometer:
Next 7 days: Neutral
Next 30 days: Neutral
Next 90 days: Higher
Bob Bregitzer
www.bobbregitzer.com
[tags]Smyrna Vinings Real Estate, Smyrna Vinings Mortgages, Atlanta Mortgages[/tags]