Investor Concerns Subside; Florida Home Loan Rates Slip For Second Straight Week

Florida home loan rates slipped for a second straight week, according to the weekly survey conducted by mortgage giant Freddie Mac. Nationally, average rates on 30-year, fixed-rate mortgages (the industry benchmark) finished the week at 6.32 percent, down from 6.34 percent the previous week. The latest decline was the second straight after 30-year rates had reached their highest levels in more than three years.

Analysts attributed the successive declines to good news on inflation and the easing of investors’ worries. Wholesale prices tumbled by 1.4 percent last month, the biggest drop in nearly three years, while consumer prices were up 0.1 percent, having jumped by 0.7 percent in January.

“The most recent economic indicators… showed that inflation is, indeed, being held in check. That news allowed long-term mortgage rates to drift a little lower,” said Frank Nothaft, chief economist for Freddie Mac.

Home sales also rebounded slightly. The National Association of Realtors reported Thursday that 5.2 percent more existing homes were sold last month than the previous one, a bump that followed five straight monthly declines. Analysts say this strong showing for sales was heavily influenced by the unusually warm weather last month, but that it provides hope that the slow Florida housing market will be just that — not one on the verge collapse.

“The housing industry remains fundamentally fit as we move into the spring buying season,” Nothaft said.

Indeed, Florida foreclosure rates have actually been lower than expected. Meanwhile, 15-year, fixed-rate mortgages, a popular choice for refinancing, averaged 5.97 percent last week, a slight drop from the prior week’s 5.98 percent. One-year adjustable rate mortgages (ARMs) inched up slightly to 5.41 percent, compared with 5.37 percent seven days ago. Average rates on five-year hybrid ARMs also rose, climbing to 5.96 percent from 5.93 percent.

The Florida home loan rates listed above do not include points, which averaged between 0.6 and 0.7 last week. A year ago, Florida mortgages were significantly lower, averaging 6.01 percent for 30-year and 5.56 percent for 15-year fixed-rate loans. One-year adjustable Florida home loans were at 4.24 percent, while five-year hybrid ARMs mortgages averaged just 5.35 percent. As investors’ concerns and the housing market continue to take shape, look for more moderate bumps and drops in the coming weeks.