Jobs, jobs, and oh – jobs. That’s what’s on the minds of Wall Street analysts as they consider the many factors that go into shaping the Florida mortgage rate landscape for the coming week.
On the whole, Florida mortgage rates improved last week – based on healthier than expected economic data and safe haven buying.
Actually, the rate improvement we saw last week was moderate at best, but it was amplified by a shortened trading week – thanks to the holiday.
Conforming mortgage rates dipped lower by approximately a quarter-percent last week, dropping them near their best levels of the year — and of all-time.
Strangely enough, Florida mortgage rates are falling as the U.S. dollar weakens., which is opposite of what normally happens – as mortgage bonds are repaid in U.S. dollars. So what we usually see is a picture in which the value of the dollar is falling, therefore, and the value of holding mortgage bonds lessens over time.
Investors are buying up bonds left and right, despite the weakened dollar. This is due in part to lingering concerns related to Dubai, and also in part to investors’ steadfast faith in the U.S. economy’s long-term health.
However, these beliefs could be shaken to the core this week — especially when Friday’s jobs report hits.
Amid Signs of US Financial Strength – Job Losses May Hinder Recovery
It’s no secret that the economy is growing. Housing is improving, banks are re-capitalizing, and businesses are making capital investment. However, employment is lagging.
More than 4 million jobs have been lost this year, and the national unemployment rate has risen above 10 percent for the first time since 1983. Consumers are worried for their jobs and are guarding their wallets this holiday season as a result. We’ve said before that consumer sentiment drives financial markets as much if not more than any other statistic. Watch for this to be the case as jobless numbers are released Friday.
The economy can’t grow without consumer spending, though, and that’s why Friday’s job figures will play an especially large role in mortgage markets. If employment data goes positive, stock markets will rally at the expense of mortgage rates.
Conversely, if data looks worse, Florida mortgage rates should dip.
Either way, it’s a gamble. If you haven’t looked at the benefits of a refinance lately, waiting until Friday to see what happens may be ill-advised. This is because the last two times Florida mortgage rates fell this low, markets corrected within 48 hours, sending rates soaring higher.
Florida mortgage rates look good today. So, if you’re ready to buy or refinance a home – consider locking something in before rates have reason to rise.
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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That’s the only thing that will turn us around. Unemployment needs to go down everywhere else, so people will come back here on vacation. That will boost employment here, etc and we’ll get back on track.