Florida Mortgage Rates Rise as Economy Shows Improvement

Florida mortgage markets worsened last week as domestic job growth surprised Wall Street and the Eurozone moved yet one more step closer to reaching a lasting Greece sovereign debt solution.

Conforming mortgage rates in Florida rose on the news, although you wouldn’t know it from looking at Freddie Mac’s weekly mortgage rate survey.

Florida Mortgage Rates Bounce Up Post Freddie Mac Announcement

According to Freddie Mac, the average 30-year fixed rate mortgage rate fell to 3.87% last week with 0.8 discount points due at closing, plus closing costs. 1 discount point is a fee equal to one percent of your loan size.

3.87% for a 30-year fixed rate mortgage is the official, all-time low for the weekly Freddie Mac survey, conducted since the 1970s. However, because Freddie Mac gathers its results on Monday and Tuesday only, by the time the survey results were released Thursday morning, Florida mortgage rates were already rising off their lows.

Then, Friday morning, after January’s Non-Farm Payrolls data was released, Florida mortgage rates surged.

The January jobs report exceeded expectations in nearly every fashion possible :

• Economists expected to see 135,000 jobs created in January. The actual number was 243,000.
• Economists expected to see the Unemployment Rate at 8.5% in January. The actual number was 8.3%.
• Revisions added an additional 180,000 net new jobs to the original 2011 tally.

Florida Mortgage Rates Move Higher as Economic Figures Improve

As compared to one year ago, there are 2.1 million more people employed in the U.S. workforce. Figures like this hint at a stronger national economy, and that tends to drive Florida mortgage rates up.

This week, with little economic data due for release, mortgage rates are expected to move on momentum. Right now, that momentum is causing Florida mortgage rates to rise.

If you’re shopping for a mortgage rate in Florida and want to know if the time is right to lock, consider that it’s impossible to time a market bottom, but simple to spot a “good deal”.

Florida mortgage rates remain near historical lows — it’s a good time to lock one in.  Call me today so that we can lock you in before they begin their upward move!

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All Time Low Florida Mortgage Rates May Increase with Improved Jobs Rate Numbers

This week, once more, we find Florida mortgage rates are on a downward trajectory. Conforming mortgage rates have returned to near all-time lows. After Friday morning’s Non-Farm Payrolls report, however, those low rates may come to an end.

It’s a risky time for Florida mortgage rate shoppers and potential home buyers and would-be refinancers to be without a locked rate.

Why Florida Mortgage Rates May Move Up

Each month, on the first Friday, the Bureau of Labor Statistics releases its Non-Farm Payrolls report for the month prior. More commonly called the “jobs report”, Non-Farm Payrolls provides a sector-by-sector employment breakdown, and the nation’s Unemployment Rate.

In December 2011, the government reported 200,000 net new jobs created, and an Unemployment Rate of 8.5%.

For January 2012, economists project 135,000 net new jobs with no change in the Unemployment Rate and, depending on how accurate those predictions are proved, FHA and conforming mortgage rates are subject to change. The monthly jobs reports tends to have an out-sized influence on the direction of daily mortgage rates.

The connection between jobs and Florida mortgage rates is fairly direct.

Job growth is a key cog in the economic growth engine and mortgage rates change daily based on short- and long-term economic expectation. As more people join the workforce, economic expectations change; the economy tends to expand, breeding optimism among investment. When this occurs, it often spurs investment in the stock market, which tends to leads mortgage rates up.

In short, in a recovering economy, when job growth is strong, all things equal, mortgage rates rise. Home affordability suffers.

So, for today’s rate shoppers, Friday’s job report represents a risk. The economy has added jobs over 15 straight months, a streak that’s added 2.1 million people to the workforce. Although the jobs market remains weak and well off its peaks from last decade, a 15-month streak is worth watching. More jobs means more more income earned nationwide, more money spent by households, and more taxes collected by governments.

This items build a foundation for economic growth and Wall Street is watching.

If tomorrow’s Non-Farm Payrolls shows more jobs created than the estimated 135,000, Florida mortgage rates are expected to rise. If the jobs figures falls short, mortgage rates should fall.

The Non-Farm Payrolls report is released at 8:30 AM ET.

Technorati Tags: Florida Mortgage, Florida Mortgage Rates, Jobs Report, Non-Farm Payrolls, Unemployment Rate

Florida Mortgage Rates Fall with FOMC Statement

Wednesday, the Federal Reserve’s Federal Open Market Committee voted to leave the Fed Funds Rate unchanged within its current target range of 0.000-0.250 percent.  This means things should remain flat or even cause Florida mortgage rates to drop.

The Fed Funds Rate has been near zero percent since December 2008.

For the third consecutive month, the Fed Funds Rate vote was nearly unanimous. Just one FOMC member dissented in the 9-1 vote, objecting only to the language used in the Fed’s official statement.

Florida Mortgage Rates Flat Due to Slowing Global Growth

In its press release, the Federal Reserve noted that the the U.S. economy has “expanded moderately” since its last meeting in December 2011, adding that the growth is occurring despite “slowing in global growth” — a reference to ongoing economic uncertainty within the Eurozone.

The Federal Reserve expects moderate economic expansion through the next few quarters but is wary of “strains” from global financial markets, and these three threats to the U.S. economy :

1. The housing sector remains “depressed”
2. The unemployment rate remains “elevated”
3. Fixed business investment has “slowed”

On the positive side, the FOMC said that household spending is rising and inflation remains in-check. The group also believes that employment will gradually improve nationwide going forward.

The Federal Reserve neither introduced new economic stimulus, nor discontinued existing market programs.

FOMC’s Statement Means Falling Florida Mortgage Rates

Immediately following the FOMC’s statement, mortgage markets rallied, pressuring mortgage rates to fall in and around Orlando.

Florida mortgage rates remain near all-time lows and, for homeowners willing to pay points plus closing costs, conventional, 30-year fixed rate mortgages can be locked at below 4 percent. If you’re in the process of buying or refinancing a home in Florida , it’s a good time to lock a mortgage rate with your lender.

The FOMC’s next scheduled meeting is a one-day event slated for March 13, 2012.

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