Florida Home Mortgage Rates Fall… Barely

For the third week in a row, Florida mortgage borrowing costs dipped slightly across the Sunshine State, according to a survey of the state’s lenders.

The average 30-year fixed rate is now at 6.17 percent, matching a low last seen on January 25, and providing ample opportunity for buyers looking to capitalize on shifting market dynamics. The 30-year, fixed-rate mortgage (considered the industry’s benchmark) had an average of 0.3 points.

Florida Mortgage rates are near their lowest point of the year, a sharp reversal from summer when rates hit four-year highs. Here’s a further look at how they shake out:

• The average 15-year fixed rate mortgage, popular for mortgage refinancing, retreated slightly to 5.91 percent.
• On larger mortgages (jumbo loans) with standard 30-year terms, the average rate slid to 6.41 percent.
• Adjustable-rate mortgages were mixed, with the average 5/1 adjustable rate Florida home loan dropping from 6.11 percent to 6.01 percent, and the average one-year ARM increased to 5.9 percent.

Evidence of a weaker economy helped push mortgage rates lower across the U.S. once again. As a result, the Florida housing market isn’t entirely sure which way it’s headed. Clear weaknesses in orders for durable goods, consumer confidence, and home prices lured investors into bonds as a safe haven amid slower growth.

Fixed mortgage rates are sharply lower than five months ago, when rates were flirting with 7 percent. At that time, the average 30-year fixed Florida mortgage loan peaked at 6.93 percent, meaning that the monthly payment on a loan of $165,000 was $1,090. Multiply that by two and you realize how staggering buying a home in South Florida can be.

With the average 30-year fixed mortgage rates now at just 6.17 percent, the same home loan originated today would carry a monthly payment of $1,007.36.