Both Florida mortgage rates and home prices took a turn for the better Wednesday as a result of the Federal Reserve’s December 15-16, 2009 meeting minutes.
The Fed Minutes provide a more in-depth look at the FOMC’s take on the economy than the initial press releases issued after these meetings supply. As a comparison, December’s press release contained 535 words. December’s minutes had 6,260.
But these “extra words” aren’t just fluff. They’re actually very important to homeowners. Because the Federal Reserve’s internal debates help to shape Wall Street expectations, it doesn’t take much for those conversations to have a trickle-down effect for Florida mortgage rate shoppers.
So, Where Does the Fed Think Our Economy is Heading?
The Fed said that economic growth is steady, inflation is in check, and an orderly wind-down of mortgage market support was underway. A look at the minutes, though, showed some disconnect.
Some Fed members believe rising commodity prices could lead to a stronger economic outlook, while others believe that improvement is housing could be “undercut” by a pull-back in government stimulus.
Overall, the Fed appears optimistic about the economy, but not as optimistic as on December 16. Mortgage markets responded favorably to the minutes and mortgage pricing improved.
Although Florida mortgage rates remain higher as compared to early-December, pricing has been on a good run this week. If you’re under contract for a home in Florida or just looking to refinance, now may be a good time to lock.
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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