Florida Mortgage Rates Decline Slightly
Rates on 30-year Florida mortgages, after rising five consecutive weeks, fell slightly as investors digested the news suggesting economic hiccups from the housing market could last longer than expected.
Freddie Mac reported that 30-year, fixed-rate Florida mortgage products averaged 6.69 percent, down from 6.74 percent last week, when rates had jumped to their highest levels in 11 months.
Analysts said the slight retreat occurred because financial markets saw weak reports on housing as indications that troubles in the slumping sector are continuing to mount.
The federal government reported that construction of new homes fell by 2.1 percent in May, leaving building activity 24.2 percent below the level of a year ago.
Meanwhile, the National Association of Home Builders said its index of home builder sentiment in June fell to 16-year lows, pushing Florida home loan rates down further.
Builders have been slashing prices and offering other incentives to move a glut of unsold homes. Demand has been hurt by troubles in the market for bad credit Florida home loan financing, offered to borrowers with weak credit.
“Mortgage rates eased this week due to market concerns that the housing market will be a longer drag on the economy,” said Frank Nothaft, Freddie Mac’s chief economist.
The U.S. economy slowed to an anemic 0.6 percent growth in the first three months of this year, the weakest performance in more than four years, with housing one of the key factors depressing activity.
All Florida mortgage rates showed declines this week.
Rates on 15-year, fixed-rate mortgages, a popular choice for Florida refinance seekers, fell to 6.37 percent, down from 6.43 percent.
Five-year adjustable-rate mortgages averaged 6.31 percent, falling from 6.37 percent, while one-year ARMs fell to 5.66 percent, down from 5.75 percent.
These Florida mortgage rates do not include points.
Thirty-year and 15-year mortgages each carried a statewide average fee of 0.5 point. Five-year adjustable mortgages carried a fee of 0.6 point while one-year ARMs had a fee of 0.7 point.
A year ago on this date, rates on 30-year Florida mortgages stood at 6.71 percent, 15-year mortgages were at 6.36 percent, five-year adjustable-rate mortgages averaged 6.32 percent and one-year ARMs 5.75 percent.
SOURCE: San Diego Union-Tribune
