Florida Mortgage Rates Rise; Highest in Eight Months

Rates on 30-year Florida mortgages rose for a third straight week, hitting their highest level in more than eight months.

Mortgage giant Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.42 percent in its weekly survey.

That was up from 6.37 percent last week and represented the highest point for 30-year Florida mortgage rates since they averaged 6.43 the week of September 14.

Analysts attributed the increase to economic strength outside of the beleaguered housing market, such as the April rise in orders for manufactured goods.

“Recent reports have indicated that economic growth outside of the housing market remains robust with a healthy consumer sector and improving business spending,” said Frank Nothaft, Freddie Mac chief economist.

The government reported Thursday that the overall economy, as measured by the gross domestic product, rose at a tepid 0.6 percent rate in the first three months of this year, the slowest pace in four years.

But analysts believe growth rebounded in the current fiscal quarter with expectations that the GDP is currently rising at a much healthier pace.

Rates on 15-year, fixed-rate home loans, a popular choice for Florida refinance seekers, rose to 6.12 percent this week, up from 6.06 percent last week.

Five-year, adjustable-rate mortgages averaged 6.19 percent, up from 6.02 percent. One-year, adjustable Florida mortgage loans were the only home mortgage type to show a decline, dipping to 5.57 percent from 5.64.

The mortgage rates do not include points.

Thirty-year and 15-year Florida home loans each carried an average fee of 0.4 points, while five-year adjustable mortgages carried a fee of 0.5 points, while one-year ARMs had a fee of 0.6 point.

A year ago, rates on 30-year mortgages stood at 6.67 percent - while 15-year Florida home loans were at 6.26 percent.

Five-year, adjustable-rate home loans also averaged 6.26 percent, while at the same time, one-year, adjustable-rate Florida mortgages were 5.68 percent.

SOURCE: Washington Post