Florida Mortgage Rates Rise This Week

Florida mortgage rates crept back up in the past seven days after many weeks of declines, according to a survey released Thursday.

The 30-year fixed-rate mortgage, considered the industry’s benchmark loan, averaged 6.37 percent for the week ending October 12, up from 6.30 percent the previous week, according to Freddie Mac. A year ago, a 30-year, fixed-rate Florida home loan averaged just 6.03 percent.

The 15-year fixed-rate home loan, a popular choice for those considering Florida mortgage refinancing, averaged 6.06 percent this week, up from 5.98 percent last week, and considerably higher than the 5.62 percent posted a week ago.

Average rates for five-year adjustable-rate mortgages (ARMs) came in at 6.10 percent this week, up from 6.00 percent last week. A year ago, they averaged 5.57 percent. One-year ARMs averaged 5.56 percent, up from 5.46 percent last week. A year ago, the one-year ARM averaged 4.85 percent.

Freddie Mac cautioned that Florida mortgage costs may rise further.

“Renewed concern that inflation is still an issue put some upward pressure on bond yields, which translates into higher interest and mortgage rates,” said the government-backed mortgage company’s chief economist, Frank Nothaft, in a statement.

“ARM rates especially felt the weight of increased inflation fears, narrowing the gap between ARMs and fixed-rate mortgage rates. Thus, ARMs may become less desirable,” he continued.

Indeed, those with adjustable-rate loans are bailing en masse, resulting in an increased volume of mortgage applications in the past few weeks.

However, high home prices, volatile interest rates and what is considered to be an uncertain market have conspired to keep many buyers at bay.