Florida Mortgage Applications Slip Over Holiday

Applications for Florida mortgages fell last week across the Sunshine State as refinancing activity cooled and the number of business days were shortened by the Thanksgiving holiday, the Mortgage Bankers Association reports.

The seasonally adjusted index of total Florida mortgage applications fell by 3.9 percent for the week ending November 24.

However, the four-week moving average (a better gauge of how the market is trending overall) for the applications rose by 1.1 percent to 622.8.

• Overall, mortgage applications were pulled down in large part by a drop in refinancing.
• Refinancing had been strong in recent weeks as rates tumbled considerably from their highs posted earlier this year, and people looked to capitalize on lower, fixed-rate loans.
• But in the past week, that was nowhere to be seen as applications for home mortgage loan refinancing dropped by a significant 9.6 percent to 1,749.6, the group said.
• At the same time, traditional applications earmarked for Florida home loan purposes rose for the third time in the last four weeks, albeit at a modest 1.3 percent clip.

Experts say the data suggests that the worst of the year’s Florida housing market slump has passed and that the market is stabilizing. The Mortgage Bankers’ index had dropped to 375.6, the lowest level in the current downturn, from around 500 a year ago at this time.

In the U.S. as a whole, the pace of existing home sales unexpectedly rose in October to a 6.24 million-unit annual rate as lower prices continue to tempt buyers.

The median home price declined 3.5 percent from October 2005, actually signaling the largest year-on-year decline since the National Association of Realtors began keeping records of such figures in 1968. That’s luring many people back to the market, even in areas such as South Florida were the prices have gotten so inflated in recent years.

As for Florida mortgage loan borrowing costs? Long-term, 30-year fixed-rate loans last week could be garnered for 6.13 percent, the lowest level since January. Expect more of the same when reports on rates come out later this week. Now is the time to buy!