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MARKET REPORT AND ANALYSIS . . .
What's Driving Residential Mortgage Rates?
Mortgage rates
scampered higher this week, with the average 30-year fixed rate mortgage
climbing by 12 basis points to 6.41%, While fixed rates are similar to
rates seen in June of 2004, 5 year arm loans are at their highest levels
in sometime.
The Federal Reserve Open Market Committee met again and raised short
term interest rates as a measured response to strong economic growth and
rising inflationary indicators. Short term rates are expected to
increased by the Federal Reserve over the next three Fed meetings and as
soon as December 2005. A key indicator is the activity among the
nations' manufactures, which posted a slightly lower activity rating in
October than compared to September. The nation's service-industry posted
a rebound from hurricane dominated September.
However, mortgage rates are still reasonable by historical standards.
What Does This Mean For You?
While mortgage rates
are moving slightly higher, there are plenty of programs to offset such
rate increases; making now a good time to purchase your dream house or
refinance your current mortgage.
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