| October 26, 2005 |
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"Prices nationwide have increased by over 15 percent while metro Atlanta has seen about a 5 to 7 percent increase. Rates continue to inch up but are still hovering near historical lows. Expect mortgage rates to continue to inch up and my break the 6 percent mark on 30 year fixed rates prior to the end of the year. The yield curve continues to "flatten" making fixed rate mortgages much more attractive than they have been in several years. Currently, there is only about a .5 percent difference in rate between 3 year ARMS and 30 year fixed rates. This spread was over 1.5 percent at this time last year making 30 year fixed rate mortgages much more attractive. Look for this spread to continue to narrow over the next 90 days." |
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