Florida Mortgage markets took a real beating last week as a mix of strong economic data and better than expected earnings results led investors into more risky investments.
Yes, folks – it’s true. When the economy shows it’s brighter side… Florida mortgage rates rise! It’s a real “Yeah… oh wait… Boo!” Situation.
The Dow Jones Industrial Average was up 7 percent.
Mortgage rates, unfortunately, didn’t fare as well. As the first week since June in which mortgage rates rose, rates were up by a lot.
Three Reasons Why Florida Mortgage Rates Climbed Last Week
Reason #1: We first saw an uptick in mortgage rates last Tuesday, just after Goldman Sachs released its blowout quarterly numbers. As one of the world’s largest financial firms, Goldman’s strong showing hinted that the financial crisis may finally be finished.
Reason #2: Blame it on Uncle Ben! No, not the rice, we’re talking our friend and yours – Ben Bernanke. The Fed Minutes released last week raised the economic forecast for both 2009 and 2010, noting that the recession should be ending soon.
Reason #3: June’s Retail Sales data and falling jobless claims. Yup – again – when the economy’s engine goes “vroom vroom…” mortgage rates in Florida start to move up. I personally feel that consumer confidence and consumer spending are the two biggest determinants of where mortgage rates are or will be heading. Always keep an eye on these data points.
Why Is This Video Here? ‘Cause it’s Great!
Plus, it offers up some sage advice from the band Mr. Mister.
So we have that going for us, which is nice…
The Week Ahead: Wall Street Leads the Way
Since we don’t have much in the way of reports or financial data releasing this week, the Florida mortgage market should continue to take its cue from Wall Street.
If stocks improve, rates are expected to worsen. (Boo!) If money retreats to bonds, generally considered safer investments, mortgage rates will improve.(Yeah!)
The two reports we will see this week are Fed Chairman Bernanke’s testimony on Capitol Hill today and Thursday’s Existing Home Sales data.
As always, the only thing constant in life is change. That said, if you see rates moving into an area that comfortably fits your family’s budget, consider locking in before the market changes.