Florida Mortgage Report: The Week Ahead – March 4th 2009

Sorry this report is coming out a bit late. Take a look. I think you’ll find the information useful.

Florida Mortgage Markets Took a Beating Last Week

This was largely due to the Federal Reserve and consumer sentiment.

This caused mortgage rates to spike from Wednesday to Friday and it caused the “lowest rates of all-time” to seem like an opportunity lost.

Florida mortgage rate shoppers should take note: This is the first time in the past four weeks that mortgage rates rose overall.

Last week was a strange week for Florida home loans and mortgage rates. Aside from a great deal of economic data, there was also:

A Federal Reserve meeting
160 of the S&P 500 firms reporting earnings
A global public health emergency

Waiting to Lock In Your Florida Mortgage Rate May Cost You

Rates rose and hurt some folks – mainly those people who hadn’t yet locked in their Florida mortgage rate. Based on the current market, each quarter-percent that mortgage rates rose added $32 per month per $100,00 borrowed.

Florida mortgage rates may see more volatility this week

The markets themselves should remain relatively calm – as should the public policy front. Movement will likely stem from external factors like the Swine Flu. If the outbreak’s intensity grows, look for money to pour back into bonds (Safe Havens) to lower rates much like it did last Monday.

Also, be aware and listen for Stress Test rumors.

Thursday, the government is expected to release its bank Stress Test results.

However, history shows that markets often make large movements before news is ever official — mostly on rumors. As a result, expect mortgage markets to carve out wide ranges on Tuesday and Wednesday in advance of the reports, making it very hard to “time” low mortgage rates.

And lastly, Friday brings us April’s employment data. There’s nothing the report can show us that we don’t already know so the biggest risk here is that employment is not as bad as we all expect it to be.

If that’s the case, stock markets will rally and mortgage rates will rise.

As we’ve said here often, Florida mortgage rates can change in an instant. This is especially true when we experience outside influences on “normal” trading like we’re seeing with Swine Flu and the Stress Test. If you’re offered a rate and it fits your budget, consider locking right away. It may not last long.

Bernanke sees U.S. recovery this year (financialpost.com)

I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage loan originator, I’m your guy. Call me at 888-859-7418 or apply online for your Florida mortgage. We’ll keep you posted and let you know when it’s time to pull the trigger!

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