The following is a guest blog from Jeffrey Heckman and Joanne Rotella with Shelter Mortgage Company and does not necessarily reflect the views of GeorgiaMoves.com
The Shelter Six
1. The recent mortgage rate surge began following a stronger than expected Employment Report released on the third of May. The logic behind the rise was that when the job market strengthens, the Fed no longer needs to manipulate rates down to such a low level.
2. Rates continued to rise following comments by Fed Chairman Ben Bernanke on June 19 indicating that the Fed would probably stop buying bonds sooner than expected. This bond buying program has been the #1 reason rates have been so low for so long. Since the June 19 meeting, there has been a great deal of uncertainty about when the Fed will actually begin to tighten monetary policy. The result has been tremendous volatility with rates