Before we get into talking about Florida mortgage rates, I want to express a heartfelt thanks to the men and women who have and are currently serving in our US military.
There are a ton of veterans here in the Central Florida area, and there are even more active duty and reservists who are now separated from their families. May the memory of Pearl Harbor stay fresh in our minds, ever reminding us the importance of preparedness, loyalty, and honor.
The Florida Mortgage Update
Florida mortgage markets saw rate increases towards the end of last week, thanks to a massive sell off in the mortgage bond market. As we’ve said here many times, when mortgage bonds prices fall, mortgage rates in Florida and the rest of the nation rise.
This rate increase marked a break in what had been a multi-week winning streak, much to the disappointment of Florida home buyers shopping for good interest rates. The increase in Florida mortgage rates took place in stages.
In the first stage, which hit early last week, mortgage bonds took a hit as Wall Street traders sought to capitalize on profits ahead of the November jobs report – and concerns over a Dubai Default began to subside.
The next stage hit on Friday, when we received the relatively good news about job losses as the report showed a net loss of just 11,000 jobs in November. Overall, with the US Unemployment Rate dipping to 10.0 percent, the economic picture began to look a bit brighter. When economic news looks good, mortgage rates take a hit. As a result, Florida mortgage markets got hit again.
Last week was not the best time to lock in a Florida mortgage rate, and this week may not prove to be much better.
With limited financial data set to release this week, Wall Street traders will likely move largely on momentum – which should lead mortgage rates higher. Aside form several confidence surveys and Fed Chairman “Uncle” Ben Bernanke’s speech, Friday’s Retail Sales report stands out as the biggest news of the week. These last numbers, the retail sales numbers, can have a fairly direct impact on mortgage rates.
Retail Sales impact mortgage rates because consumer spending makes up roughly two-thirds of the US economy. With jobs data looking stronger, it’s expected that Retail Sales will show a modest increase over last month.
As always, if we get good or better than expected financial news of any kind, mortgage rates should rise — much like they did on the jobs data. On the other hand, if the data is weak, we’ll see mortgage rates drop.
So far this season, Holiday Shopping sales numbers have been mixed.
Remember, mortgage rates normally move up faster than come down, so if your homebuying or refinance needs are looming, you may want to lock your rate mortgage rate as soon as you see one you like.
Despite moving up a bit last week, Florida mortgage rates are still very low.
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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Excellent blog post, I look forward to reading more.
Well this article is a real informative one which gives us the mortgage update in Florida. I got a clear idea about the mortgage market from your article. Thank you so much for the article.