Florida Mortgage Rates Decline For Week

Falling for the third week in a row and hitting their lowest levels since April, Florida home loan rates tumbled another 0.08 percent on average.

Government-backed mortgage giant Freddie Mac reports, in its weekly survey of mortgage lenders, that 30-year, fixed-rate mortgages (the industry’s benchmark loan) fell to 6.55 percent this week, down from 6.63 percent. It is the lowest level for the 30-year, fixed-rate mortgage since the week of April 20, when the average came in at 6.53 percent.

Since that time, Florida mortgage loans have been rising, hitting as high a level as 6.80 percent on July 20, their highest point in more than four years.

Analysts have attributed the latest decline to continued evidence that the economy is slowing, which should ease pressure on interest rates, and, as a result, the decision by the Federal Reserve this week to call a temporary halt to its two-year campaign to push short-term rates higher.

The Fed had been combatting inflation fears with 17 consecutive hikes in rates prior to this week’s meeting. Analysts say that the report last week that job growth was weak in July for a fourth straight month was just the latest evidence that the economy is slowing, prompting the U.S. central bank to keep rates as they are.

“The weaker than expected jobs report combined with the Fed’s decision to pass on raising rates at its last meeting led directly to lower rates this week,” said Frank Nothaft, chief economist for Freddie Mac.

The housing market, which shattered records for five years running in Florida, have slowed dramatically this year as higher Florida mortgage costs are making it increasingly expensive for some people to buy a home. Not to mention the fact that the state’s staggering home prices haven’t retreated much, if at all.

Rates on 15-year, fixed-rate mortgages, a popular choice for those considering refinancing a Florida mortgage, averaged 6.20 percent this week, down from 6.27 percent last week. One year ARMs held steady at 5.69 percent, the same average as last week, having been at 5.78 percent the week of July 27.

Rates on five-year adjustable-rate mortgages fell 0.06 percent to 6.21 percent this week, down from 6.27 percent last week.

The rates quoted here do not include add-on fees known as points, which averaged 0.8 this week among one-year ARMs, and 0.4 among each of the other three primary mortgage categories. A year ago, 30-year home loans averaged 5.89 percent, 15-year loans stood at 5.47 percent, one-year ARMs were at 4.57 percent and five-year ARMs averaged 5.40.