Florida mortgage markets exhibited little in the way of conviction this past week, carving out just a narrow trading channel. We saw very limited financial data on which for markets to move, leaving mortgage rates momentum-bound.
Luckily for Florida mortgage rate shoppers, the momentum going through last week was positive. Rates were a bit lower Monday through Thursday before breaking downward Friday afternoon. Florida home buyers and those looking to refinance their Florida homes this past weekend caught a nice break.
Overall, we saw mortgage rates in Florida fall for the second week in a row.
This week, in holiday-shortened trading and with little economic data set for release, expect mortgage rates to again move on momentum. The biggest report of the week is Wednesday’s Producer Price Index.
Producer Price Index is important to Florida mortgage rates because of its role in inflation. PPI is sort of like a Cost of Living-type measurement, but for businesses rather than individuals. As business costs rise, the thought goes, it’s not long before consumer costs rise, too. Businesses eventually pass on costs, after all.
As such, a rising Producer Price Index can foretell an increase in consumer prices, and, therefore, inflation.
Inflation is bad news for mortgage rates.
PPI expectations have revised downward this month, especially because last week’s data showed a deceleration in consumer prices nationwide. If PPI isn’t as weak as expected, mortgage rates here in Florida and around the nation will rise.
Other influential data this week includes Housing Starts, Consumer Confidence and Initial Jobless Claims.
So far, 2010 has been for mortgage rates in Florida and around the country. If you’re in need of a rate lock, this week may be a good time to take one.
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!
No related posts.
