Florida mortgage markets improved last week, hovering for a time at their lowest levels in the past 3 months.
However, come last Friday – rough going on the mortgage rate front all but wiped away any improvement we saw mid-week. What we saw then were mortgage rates tacking on an eighth-percent or more over the last 90 minutes of trading.
This said, there was still some general improvement, and it was the second straight week in which mortgage rates fell.
Last week was a bit wonky, as we received little to no real economic data. Financial markets, therefore, improved mostly on momentum plays and a general shift from cash positions into bonds. This could explain the reason we saw Florida mortgage rates move up a bit. Remember – when investors feel their money is safe in stocks (generally riskier), they move money out of “safer” mortgage backed bonds. This results in mortgage rate increases.
Economic News to Look for This Week
We’re making up for a shallow news week last week for sure. This week brings the Consumer and Producer Price Indices — “Cost of Living reports” for households and businesses, respectively - as well as a Retail Sales report, Housing Starts for August, and 3 speeches from Uncle Ben and his Merry Men (and women) from the Federal Reserve!
Understand that Florida home loan rate movement will happen this week, as each of these reports or news releases has the power to move markets.
In fact, if I were one of this week’s data elements – I’d be singing “I can move, move, move any mountain!”
Furthermore, Wall Street will be planning it’s collective next moves ahead of the coming Federal Open Market Committee meeting. The Fed is expected to leave the Fed Funds Rate in its current range near 0.000 percent – however, do not forget that the Fed does not directly impact mortgage rates.
Just because the Fed Funds Rate stays the same – we may still see an upward shift in Florida mortgage loan rates. Expect volatility Tuesday and Friday, and be wary of momentum. Mortgage rates tend to rise faster than they fall.
If you’ve been floating your mortgage rate over the past few weeks, it may be prudent to lock in Monday or Tuesday. As always, give me a call or send me an email and we’ll get you taken care of.
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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