Florida Home Loan Demand Increases as Interest Rate Hikes Take Break

Finally.

As the incredible raising of interest rates took a break this week, the positive effects were felt through the housing sector. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity for the week ending June 30 increased 5.9 percent from the seven days prior.

In other words: as rates calmed down, demand for Florida home loans shot up. Doesn’t seem like a coincidence, does it?

Last Thursday, the Federal Reserved boosted Florida home loan rates and interest rates for the 17th consecutive time. As result, borrowing costs on 30-year fixed-rate mortgages, averaged 6.80 percent, down 0.06 percentage point from the previous week. As discussed, however, this fact doesn’t mean Florida home loan refinancing is always the right call.

Other survey results included:

• The purchase index, which is considered a timely gauge of U.S. home sales, was substantially below its year-ago level of 520.8.

• The group’s seasonally adjusted index of refinancing applications increased 5.0 percent to 1,423.9. A year earlier the index stood at 2,788.2.

• Rates on one-year adjustable-rate mortgages (ARMs) increased to 6.39 percent from 6.36 percent.

Overall, Florida home loan activity appears to be stirring. Potential buyers are anxious to make an offer, they just want to see the market tilt even more in their favor.