Florida Mortgage Costs Fall to 10-Month Low

Despite predictions from some economists that they were poised for another increase, Florida mortgage rates actually declined — to their lowest level since January 25, reports say.

According to a weekly survey of large lenders, 30-year, fixed-rate Florida home loan rates fell 0.08 percent to 6.24 percent, down from 6.32 percent the week before. The loans carried an average of 0.32 origination points.

The average 15-year fixed-rate home loan, popular for mortgage refinancing, dipped beneath the 6 percent level for the first time in months, coming in at an average of 5.98 percent. This is no surprise to those who saw Florida mortgage loan applications rise in the past week, indicating an urgency to refinance on the part of consumers.

Adjustable-rate mortgages also declined this week. The average 5/1 ARM was offered for 6.13 percent, while the average 1-year ARM retreated to an average 5.87 percent. The average 30-year, fixed-rate jumbo Florida mortgage slid to 6.47 percent.

Indications that inflation pressures may be easing, along with comments from Federal Reserve Board members downplaying the likelihood of further rate hikes helped push mortgage rates lower.

The biggest influence on the Fed’s change of direction is the latest reading on the Producer Price Index (PPI) showed a decline in prices, an antidote to the inflation concerns of the Fed.

Worries about any additional interest rate hikes are on the back-burner, at least for now, as investors are purchasing government and mortgage-backed bonds in large quantities. This pushed bond prices higher and bond yields lower, which directly correlates to Florida home equity loan rates as well as standard mortgage costs.

With the average 30-year fixed rate now 6.24 percent, a $160,000 home loan issued today would carry a monthly payment of $1,014.86. Six months ago, with rates nearly the 7.0 level, that amount would have been close to, or over $1,100 monthly. Fixed-rate loans are compelling to those considering refinancing as to dodge impending rate adjustments.