Florida Mortgage Rates Edge Higher For Third Week In a Row

Rates on 30-year Florida mortgages rose for the third consecutive week as industry investors viewed improving U.S. economic reports as a sign that the Federal Reserve will sit tight and not cut interest rates - at least for the time being.

The state’s home mortgage lenders reported Thursday that 30-year, fixed-rate mortgage loans (the most common financing option) inched up to 6.18 percent this week. That was up from last week, when Florida mortgage costs averaged 6.13 percent.

The increases in recent weeks came after a several-month slide in rates which helped set the stage for a rebound in sales of both new and existing homes.

The National Association of Realtors reported Thursday that existing home sales rose by 0.6 percent in November after a 0.5 percent October increase, the first consecutive monthly sales gains since the spring of 2005.

That followed Wednesday’s news that new home sales rose by 3.4 percent in November. As economists expected, Florida mortgage loan rates for other financing products also showed increases this week.

Rates on the 15-year, fixed-rate mortgage, a popular choice for those in Florida seeking home mortgage refinancing, rose to 5.93 percent, up from 5.89 percent last week.

Meanwhile, ARMs edged higher over the past week. Five-year adjustable-rate mortgages rose to 5.98 percent, up a bit from 5.96 percent last week, while one-year ARMs saw rates increase to 5.47 percent, up from 5.44 percent last week.

What direction will Florida mortgage rates take as 2006 draws to a close? Will predictions of rates rising steadily, but modestly (staying under 7 percent) throughout 2007 prove accurate, or will the market surprise us all? Stay tuned.