Could Foreign Markets Signal Florida Mortgage Rate Increases?

Florida Mortgage Rates on the Rise Yesterday, I reported on what I think Florida Mortgage markets may look like over the course of the coming week. Today, I want to delve a bit deeper into the how and why of it all.

As we know, mortgage rates in Florida and across the nation spiked a bit last week as investors responded to a recovering global economy. As usual, home loan rates were worse as we headed into the weekend, marking the second week in a row that rates soared on a Friday.

For some months now, Wall Street has been in limbo; undecided whether the economy is truly showing signs of improvement. As we’ve seen, negative economic news has moved rates lower, while positive news has tended to do move them upward.

Lately, financial investors have been searching for signals of recovery pretty much anywhere they can find them. Last week’s general lack of hard-hitting economic data led many investors looking for signs from the World’s Central Banks.

Could Foreign Markets Signal Mortgage Rate Increases?

The answer is yes. Well, at least indirectly. See, just a short while after Australia raised its interest rates by one-quarter percent, Fed Chairman “Uncle” Ben Bernanke hinted that the Fed may raise interest rates sooner than investors and financial institutions here in the US had expected. As a result, stock markets rallied on the news and – as is the case when stocks get more attractive… mortgage bond markets tanked.

Again, when bond prices fall, mortgage rates go up.

Now – for the week ahead, we’ll get a lot more in the way of hard-hitting economic data. As a result, you should expect increased Florida mortgage rate volatility.

Home loan rates have been very low lately, but they remain jumpy. Rates change quickly, and if you’re not ready for them when they fall, you’ll likely miss your chance to catch the bottom.

Florida home loan rate shoppers in need of a lock should remain in ready-position. As we’ve seen over the last 2 weeks, when rates start to rise, they tend to rise in a hurry.

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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