Florida Mortgage Loans More Expensive For Fourth Consecutive Week

As was widely expected, Florida mortgage rates didn’t change much in the past week as a busy holiday season concluded with a four-day market pause as the nation paid tribute to former president Gerald Ford.

The 30-year, fixed-rate Florida mortgage - the industry’s benchmark loan - rose just 0.01 percent, averaging 6.24 percent for the week, according to a survey of large home loan providers.

Mortgages in this week’s survey had an average total of 0.27 points, which the borrower can purchase to lower the rate, and generally cost 1 percent of the loan’s value. One year ago, the 30-year mortgage rates were at 6.27 percent; four weeks ago, they were 6.08 percent. Across the state, mortgage applications rose this week as well.

Meanwhile, the 15-year fixed-rate Florida home loan rose 0.03 percent to 5.99 percent. The 5/1 adjustable-rate mortgage loan rose 0.04 percent to end the week at 6.15 percent.

The average rate on the 30-year fixed has now risen four weeks in a row, having tumbled for six weeks in a row before that. The last time the fixed-rate 30-year mortgage was this high was November 15, when it was also 6.24 percent. Last summer, the mortgage rates were pushing 7 percent.

What’s next for Florida mortgage rates as 2007 dawns?

That remains to be seen, but inflation concerns still rack the Federal Reserve. In the minutes of its recent rate policy meeting on December 12, members of the committee expressed worry about the possible impact inflation will have on the housing market and the economy.

The key sentence of the minutes went like this:

“Although readings on core inflation had improved modestly since the spring, price pressures were not yet viewed as convincingly on a downward trend. Most participants expected core inflation to moderate slowly over time, but stressed that the risks to the inflation outlook remained to the upside.”

The bottom line: don’t expect the rates of Florida home loans to move a lot in any direction for the time being, and capitalize on this opportunity if you’re looking to get in on the action. Conditions have shifted in favor of buyers, and this is a great opportunity to apply.