Florida Home Mortgage Loan Costs Hold Steady

Florida mortgage rates showed little movement this week, with the average 30-year fixed-rate loan holding steady at 6.42 percent.

According to a weekly survey of the state’s largest lenders, 30-year fixed-rate mortgages had an average of 0.32 origination points.

The average 15-year, fixed-rate mortgage, a popular option for people in search of Florida home mortgage refinancing, moved to 6.10 percent, down from 6.11 percent last week.

On larger loans, the average 30-year, fixed-rate jumbo mortgage slipped ever so slightly to 6.67 percent from last week’s posted 6.68 percent.

Adjustable-rate mortgages showed a slight increase. The average 5/1 adjustable-rate mortgage (5/1 ARM) inched to 6.24 from 6.23 percent, as the average one-year ARM rose to 5.92 from 5.90 percent.

Various forces vied to push rates upward and pull them downward.

Leading the way were two measures of inflation released this week — the Producer Price Index (PPI) which measures inflation at the wholesale level, and the Consumer Price Index (CPI), which measures it at the retail level. Both showed overall prices falling in September, but core prices on the way up.

Overall prices include food and fuel. Core prices exclude food and fuel, because commodities such as those can jump up and down rapidly from month to month in response to bad weather, war and the vagaries of the markets. That’s just what fuel prices did. Retail energy prices fell 7.2 percent in September, and wholesale energy prices fell 8.4 percent.

But when you take away the costs of food and energy, prices were up throughout the Sunshine State. After all the pushing and pulling was done, Florida mortgage costs ended up pretty much exactly where they were last week.

While still at relatively low levels by historical standards, Florida home mortgage borrowing costs are higher than one year ago.

At that time, 30-year fixed-rate mortgages averaged just 6.17 percent, making the monthly payment on a loan of $165,000 was $1,007.36. With the average 30-year fixed rate now 6.42 percent, that same Florida home loan today would carry a monthly payment of $1,034.25.

Mortgage rates this low are making a compelling refinancing option for the millions of adjustable-rate borrowers facing sharp payment adjustments.