Florida Mortgage Rates Fall For Second Consecutive Week

After dipping slightly the previous week, mortgage rates fell a little more steeply in the past seven days. The national average for 30-year, fixed-rate loans is now 6.15 percent, down from 6.21 percent a week ago and 6.22 the week before. The data was compiled by industry giant Freddie Mac as part of its weekly Primary Mortgage Market Survey.

The rates are well above the 5.74 average rate of a year ago, but lower than at the end of 2005, when most experts predicted their steady growth. Loans averaged 0.6 points last week. Rates for 15-year fixed-rate mortgages also dropped, ending the week at 5.71. One week ago, the loans averaged 5.76 percent; A year ago, 5.19 percent.

Meanwhile, updating a previous story, the National Association of Realtors announced a 1.7 percent drop in existing home sales from November 2004 to the same month last year. Final data for December has not been calculated, but the group predicts that 6.97 million homes will have changed hands, setting another annual record.

Nevertheless, the amount of available homes for sale has risen rapidly, according to the Realtors. At the current sales pace, there is a five-month supply of housing, up sharply from the 3.8 month estimate compiled in January of 2005. The main culprit is higher mortgage rates, still up significantly from the middle of last year despite several consecutive weekly declines.

If Florida home loan rates remain in the general vicinity of where they are now, however, new buyers’ payments won’t be adversely impacted to a major extent. The increase in inventory gives applicants a great chance to tip the scales in their favor.