Florida Mortgage Rates Inch Upward Again
Last week, rates on 30-year fixed-rate mortgages inched up to their highest levels since early December, while applications fell for a second straight week, according to USA Today.
The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ending February 3 slid 1.2 percent to 619.3 from the previous week’s ending index of 626.8, following a decline in home sales. Interest rates on 30-year fixed-rate mortgages, excluding fees and points, averaged 6.25 percent, up 0.02 percent from the previous week.
On December 9, 30-year loan rates reached 6.28 percent.
The 30-year fixed-rate mortgage is the most conventional home loan and the industry benchmark. The averages tallied this week are substantially above the 2005 low of 5.47 percent, seen in late June. The highest average recorded during 2005 was on November 11, when rates rose to 6.33 percent. Fixed 15-year mortgage rates, meanwhile, averaged 5.84 percent, up from 5.79 a week ago.
Rates on one-year adjustable-rate mortgages (ARMs) remained unchanged. The MBA’s seasonally adjusted purchase mortgage index, which is considered an accurate and timely gauge of the U.S. housing market, fell to 425.1 from the previous week’s 435.7.
Analysts say an increasing number of borrowers are converting their ARMs into new fixed-rate loans as the difference between adjustable and fixed mortgage rates narrow — thus taking away the advantage of adjustable-rate and exotic loans. This has been a factor behind the recent rise in demand for refinancing. The group’s seasonally adjusted index of refinancing applications bumped up to 1,751.0 from the previous week’s total of 1,747.2.
The MBA’s survey covers about half of all U.S. retail residential mortgage companies, with respondents comprised of mortgage bankers, commercial banks and thrifts. Analysts’ exact projections vary, but most agree that Florida home loan rates will continue to rise this year, perhaps as high as 6.5 or 7.0 percent.
While that represents a significant bump, prospective applicants for Florida home loans need not be too alarmed. The graphic above (which runs through the end of 2005) shows how low that is when compared to five or even 10 years ago. It’s still a good time to buy, especially with prices leveling off.
