Florida Mortgage Rates Slip Yet Again

As predicted, Florida mortgage rates fell slightly this week, marking the seventh time in eight weeks that they have declined after strong gains in the first part of this year.

The 30-year fixed-rate mortgage (the industry benchmark and the most common financing option) averaged 6.43 percent for the week ending September 14, down from 6.47 percent, according to Freddie Mac’s weekly market survey. A year ago, the 30-year fixed home loan rates averaged 5.74 percent.

The 15-year fixed-rate Florida home mortgage loans, meanwhile, averaged 6.11 percent this week, down from 6.16 percent last week. Just one year ago, it averaged 5.32 percent. Five-year adjustable-rate mortgages (ARMs) came in at 6.10 percent this week, down from 6.14 percent last week. A year ago at this time, 4.46 percent was the average.

One-year ARMs averaged 5.60 percent, down from 5.63 percent last week. A year ago, these mortgage rates averaged 4.46 percent.

“Although 30-year mortgage rates are about three-fourths of a percentage point higher than they were last year, it’s good to keep in mind that rates have dropped from the high of 6.80 percent reached just eight weeks ago,” said Frank Nothaft, Freddie Mac V.P. and chief economist.

The expert predicted that with a slowing economy, inflation may simmer down and the U.S. central bank is more likely to leave interest rates alone in that case.

“With short-term interest rate increases seemingly on hold, for a while at least, interest rates overall should not experience any big shifts in either direction. The risk to our forecast of relatively stable mortgage rates is that inflation will unexpectedly heat up, causing bond markets to raise their expectations that the Fed will intervene by raising short-term rates. In that case, mortgage rates will again start to rise,” he said.