Florida Mortgage Loan Rates Soar to 11-Month High
Florida mortgage rates continued their ascent, rising for the fifth straight week, and skyrocketing to highs not seen in nearly a year, a weekly survey shows.
This week’s jump in average interest rates on 30-year Florida mortgages, to 6.74 percent from 6.53 percent, was the largest in three years, Freddie Mac said.
It was spurred by concerns about inflation and strength in consumer and business spending, the mortgage company said.
The last time these benchmark mortgage rates were higher was the July 20 week in 2006, when they averaged 6.80 percent.
The 30-year Florida home loan rates, the benchmark for the industry, have surged by 0.59 percent from 6.15 percent the week ending on May 15.
Meanwhile, 15-year mortgage rates also soared this week, rising to 6.43 percent from 6.22. That was the highest since 6.44 percent in the July 6 week last year.
“These (Florida home mortgage rate) moves parallel rising yields on Treasury securities, as concerns about inflation and continuing strength of consumer and business spending have dimmed hopes for an interest rate cut,” said Frank Nothaft, Freddie Mac vice president and chief economist.
“Higher mortgage rates may weigh on the housing market’s recovery. As demand appears to have stabilized, inventories of new homes remain high, putting a lot of downward pressure on construction and home prices.”
Such spikes in 30-year and 15-year Florida mortgage interest rates exceeded their year-ago levels officially. During the same week last year, 30-year mortgages averaged 6.63 percent and 15-year loans averaged 6.25 percent.
This week, one-year adjustable-rate mortgages (ARM) averaged 5.75 percent up from 5.65 percent last week and from 5.66 percent a year earlier.
The “5/1″ ARM, set at a fixed home loan rate for five years and adjustable each year after, averaged 6.37 percent, up from 6.24 percent last week.
On average, a Florida mortgage lender charged an average of 0.4 percent in fees and points on 30- and 15-year mortgages, both unchanged since May 17.
Fees on the one-year ARM averaged 0.7 percent, the same as last week, and 0.5 percent on the 5/1 ARM, down from last week’s 0.6 percent.
SOURCE: Freddie Mac
