Florida Mortgage Rates Slide as Housing Market Problems Persist

Florida mortgage rates slid downward in the past week as the housing market continues to falter in the Sunshine State and mortgage lenders are worried it will have negative effects on the economy.

The 30-year fixed-rate home mortgage - the industry’s most common home loan, and considered the benchmark loan for tracking market trends - averaged 6.22 percent, down from 6.30 percent last week.

According to Freddie Mac’s mortgage market survey, which the government-backed lending giant conducts on a weekly basis, last year at this time, 30-year mortgage rates averaged just 6.26 percent.

“Mortgage rates eased a little more this week, as market participants were concerned over how much negative impact a slowing housing market may have on economic growth,” Frank Nothaft, vice president and chief economist for Freddie Mac, said in a statement.

Meanwhile, 15-year mortgage rates, a popular choice for Florida home mortgage refinancing, averaged just 5.97 percent, down from 6.04 percent last week.

Borrowing conditions still favor buyers as the market slumps. One year ago, average mortgage rates for 15-year Florida home loans came in at just 5.89 percent.

As for 5-year adjustable-rate mortgages, they averaged 5.96 percent, down from 6.01 percent last week. Last year, when mortgage applications for such loans began to slow dramatically, it was 5.32 percent.

The 1-year adjustable-rate Florida mortgage, meanwhile, averaged 5.49 percent, down from 5.52 percent last week. A year ago at this time, it averaged 5.32 percent.

Next week’s release of new and existing U.S. home sales might offer a more complete gauge of the housing industry’s strength. Florida mortgage rates could fluctuate more significantly then.

“In addition, the second estimate of economic growth in the fourth quarter of 2006 will be released next week and should further provide insight into what extent the housing market is affecting the economy,” Nothaft said.