Florida Mortgage Rates: Staying Put
Florida mortgage rates showed little movement this week following a sharp slowdown in consumer spending growth and slow inflationary readings.
The average 30-year fixed-rate Florida mortgage loans averaged 6.16 percent for the week ending May 3, unchanged from the previous week, the weekly survey data released by Freddie Mac indicates.
Last year at this time, 30-year Florida mortgage rates were nearly half a percent higher, averaging 6.59 percent.
“The recently advanced report of first quarter Gross Domestic Product (GDP) was weaker than expected, growing only 1.3 percent,” said Frank Nothaft, Freddie Mac V.P. and chief economist.
“The housing market shaved a full point off real GDP growth. Additionally, both total consumer spending and price increases in consumer expenditures were quite tame in March. These contributing factors allowed mortgage rates to hold steady this week.”
Consumer spending grew at its weakest pace in six months in March, the U.S. Commerce Department reported Monday, climbing just 0.3 percent.
The report also included a key inflation measure, known as the core PCE price deflator, a measure closely watched by the Federal Reserve in its tracking of interest rates. It remained flat during the month of April.
The rate on 15-year home loans, a popular Florida mortgage refinancing option, averaged 5.87 percent, unchanged from the previous week.
A year ago, the 15-year mortgage averaged 6.22 percent. Today, it offers a terrific opportunity for those looking to for a Florida refinance to free themselves of an adjustable-rate loan.
Speaking of ARMs, five-year adjustable-rate mortgages decreased a little to 5.87 percent from 5.88 percent seven days beforehand.
Five-year ARMs averaged 6.21 percent a year ago.
The average one-year adjustable-rate Florida home loans, meanwhile, fell to 5.42 percent, down from 5.43 percent the previous week.
At this time a year ago, the one-year Florida home loan averaged 5.67 percent. Costs are lower across the board today.
SOURCE: CNN Money
