Florida mortgage markets experienced another round of volatility last week, delivering a very wide range of mortgage rates between Monday and Friday.
Luckily, for Florida mortgage rate shoppers, the momentum was largely positive.
Mortgage rates in Florida fell for the second time in as many weeks, but on the whole – rates still remain higher versus their early-October lows.
The financial news impacting Florida mortgage rates last week was pretty extensive:
- The Federal Reserve held the Fed Funds Rate near 0.000 percent
- The Unemployment Rate crossed 10 percent
- The First-Time Home Buyer Tax Credit was extended to April 2010
Together, these 3 events helped push Wall Street analysts towards a more positive outlook regarding the U.S. economy’s chances for recovery, but not yet out of the woods. This particular philosophy has been excellent for Florida mortgage rates, helping to hold conforming 30-year fixed mortgage rates near 5.250 percent since the start of the year.
It helped rates last week, too. But low rates aren’t without threats.
For one, the decision by “Uncle” Ben Bernanke and company to hold the Fed Funds Rate near 0.000 percent will eventually spark inflation concerns. When it does, Florida mortgage rates will rise. That won’t be this week, though.
Actually, nothing may happen this week — as there’s not much data to release. Apart from a retail report, a confidence survey and some Fed speakers, the calendar is bare. That, and Wednesday is a federal holiday.
However, without data, markets often trade on things like geopolitics, or energy concerns, or momentum. In other words, don’t be lulled into thinking rates won’t change this week.
At least for now, the Florida mortgage rates look good. By the end of the week, that may not be the case.
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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