Florida Home Mortgage Rates Decline Amid Inconclusive Economic Forecasts

A lack of definitive economic data helped keep Florida mortgage rates at their lowest levels since mid-December, a Bankrate.com survey reveals.

Rates dropped for the fourth time in the past five weeks, with the average 30-year fixed Florida mortgage - the industry’s benchmark loan - dropping to 6.19 percent.

According to the survey of the state’s lenders, the 30-year, fixed-rate mortgages averaged 0.3 origination points.

The average 15-year fixed rate home loan, very popular for Florida mortgage refinancing, remained unchanged at 5.95 percent.

On larger home loans, the average 30-year, fixed rate jumbo mortgage inched higher to 6.42 percent. Adjustable rate mortgages remained mixed, with the 5/1 ARM moving up to 6.04 percent and the one-year ARM sliding to 5.94.

The mortgage rates remained low on evidence of slower economic growth. Last week, the fourth quarter GDP was revised sharply lower. This week, productivity and factory orders came in lower than forecasted.

Although a survey of the manufacturing sector was stronger than expected, the larger services sector slowed notably. Prospects for slower economic growth help buoy demand for Treasury securities, pushing prices higher and yields lower. The rates of Florida mortgages are closely related to yields on long-term government bonds.

Fixed Florida mortgage rates are notably lower than last summer, when the Fed raised interest rates for the 17th consecutive - but last - time.

At the time, rates for the average 30-year fixed mortgage loan peaked at 6.93 percent, and a $165,000 home loan carried a monthly payment of $1,090.00.

With the average 30-year fixed rate now 6.19 percent, the same Florida home loan originated today would carry a monthly payment of $1,009.50, not counting property tax or insurance.

Fixed mortgage rates today offer a compelling refinancing alternative for adjustable rate mortgage borrowers facing sharp payment adjustments.