Florida Mortgage Rates at Four-Month High

A lukewarm inflation rate and continued strong economic growth propelled Florida mortgage rates to their highest level in more than three months, Freddie Mac reported today.

The 30-year, fixed Florida mortgage rates (the industry’s benchmark) climbed to an average of 6.34 percent in the week ending February 1, up from 6.25 percent a week ago.

This week’s averages marked the highest point since back on October 26, at which point the benchmark Florida home loan averaged 6.4 percent. At this time last year, the 30-year home loan rate averaged 6.23 percent.

The loans in this week’s survey carried an average of 0.4 points.

The 15-year, fixed-rate mortgage, a popular choice for mortgage refinancings, rose to 6.06 percent from 5.98 percent in the same one-week period. The last time the 15-year home loan approached that level was October 26, when rates came in at 6.1 percent.

A year ago, the 15-year Florida mortgage rates averaged 5.81 percent. This week’s 15-year home loan rates also carried an average fee of 0.4 points.

The state’s home mortgage loan costs, while not expected to increase much throughout 2007, have moved higher following recent upbeat economic news, including strong annual growth in the economy and rising consumer confidence.

Short-term, adjustable-rate mortgages were also higher in the past week. The five-year hybrid ARM rose to 6.04 percent from 6 percent. The five-year Florida home mortgage loan rate had an average fee of 0.6 points. A year earlier, the five-year rate averaged 5.87 percent.

The one-year adjustable mortgage rates also increased to 5.54 percent from 5.49 percent, with an average fee of 0.7 points. Last year at this time, the one-year rate averaged 5.33 percent.

Meanwhile, mortgage applications for domestic home loans have been on the rise, according to a new report released this week. The Mortgage Bankers Association’s mortgage refinance index increased by about 5 percent over the past week. At the same time, the adjustable-rate share climbed to 21.4 percent from 20.3 percent.

By and large, Florida mortgage lenders are seeing two types of customers: those who are looking for an investment property and home buyers selling their existing homes and purchasing a more expensive residence.