Florida Mortgage markets took a hit for the second week in a row, with concerns last week rising regarding mortgage defaults and economic data that came in stronger than expected. With investors feeling more sure about the economy, money left bonds – typically seen as safer investments, and poured into stocks. As such, Florida mortgage rates suffered.
December 1, 2009 marked an all time mortgage rate low, but rates today are back to mid-November levels. That said, mortgage rates in Florida are still low. They’re just not as low.
The story that should concern Florida mortgage applicants between now and early-2010 is that which involves Retail Sales numbers. Based on last week’s government report, American consumers are spending more this holiday season than was expected. Such an increase in consumer spending could mark an upswing in consumer confidence where the economy is concerned. Normally, when the economy does well, mortgage rates rise.
Job Growth and Consumer Spending This Week’s FOMC Focus
Consumer spending and job growth will be in focus this week as the Federal Open Market Committee (FOMC) meets for its final 2-day meeting of the year.
The FOMC should keep the Fed Funds Rate at its target range” near 0.000%, but when the FOMC adjourns at 2:15 PM Wednesday, its press release will still be the leading financial news story.
When the press release comes out, be sure to watch for verbiage on the anticipated economic growth for 2010, because regardless what the Fed says, mortgage rates will be in flux. Here’s how this might pan out:
- If the Fed says inflation is under control, mortgage rates should fall
- If the Fed says inflation pressures are growing, mortgage rates should rise
This week also brings other financial news, including PPI and CPI — 2 popular inflation gauges, as well as some housing data, too.
If you need to lock a rate this week, it may best to lock before the FOMC releases it’s press announcement. With the recent strength in Retail Sales and the reports of “crowded malls” over the weekend, the Fed may choose to revise its growth estimates for the economy — a move that would be awful for mortgage rates.
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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