Increasing by 0.625 percent Wednesday, Florida mortgage rates experienced the biggest one day increase in recent history – perhaps ever. Yup, you read it right. Zero-point-six-two-five percent.
Things started heating up yesterday at around 1:00 PM ET and continued on through market close. If you read this blog regularly, I recommended that you lock in your Florida mortgage interest rate. Those who did so can breathe easy as there’s definitely no “buyer’s remorse” on that one!
If you’re locking today, your Florida mortgage – expressed in monthly payments – will now be higher by $29 per every $100,000 borrowed. That’s a pretty hefty one day shift.
Why Did Rates Spike So Dramatically?
A 0.625% rate jump is rare for sure, but these things don’t just happen without reason. Yesterday’s rate incrase was the result of several factors coming together:
- Rising oil prices and gas prices
- Optimistic predictions about the end of the recession
- Concerns over the U.S. total debt load
- Fears of inflation
In addition to these factors, trading floor momentum helped to push mortgage rates higher. Think of it as a feeding frenzy of sorts. See,as markets deteriorated, sell offs amplified like shock waves, amplifying Wall Street’s overall losses. As mortgage bond prices fell, mortgage rates rose. By a lot.
Mortgage markets are notoriously fickle and yesterday’s events proved it. Days like Wednesday are precisely why experienced mortgage brokers recommend shopping for mortgage rates in a compressed time frame. The faster you lock in your preferred rate, the lower the risk of losing low interest rates to new market conditions.
I hope you found this post useful! As always, if you or anyone you know is in need of a local Florida mortgage broker, I’m your guy. Call me at 863-604-3019 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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