Florida Mortgage Rates Down Again This Week

Rates on 30-year, fixed-rate Florida mortgages, the benchmark for the home loan industry, fell again this week, to 6.63 percent from 6.67 percent, according to a weekly survey by Freddie Mac.

Average rates on 15-year fixed-rate Florida home mortgage products also declined, falling to 6.30 percent from 6.34 percent.

Despite falling for three weeks, average rates on 30-year mortgages are still higher than they were during the first five months of the year.

The Florida mortgage rates climbing on May 17 - to 6.21 percent from 6.15 percent, and ultimately crested on June 14 at 6.74 percent.

“Long-term mortgage rates continued to move lower for a third consecutive week, in part reflecting a moderation in core inflation,” said Frank Nothaft, Freddie Mac vice president and chief economist.

He noted that May’s core personal consumption expenditures registered the lowest year-over-year rise in more than three years.

That report, a measure of inflation released by the Commerce Department on June 29, showed spending on consumer goods excluding food and energy went up by 1.9 percent over the last 12 months.

That’s the smallest rise since March 2004.

Average mortgage rates were also lower than a year ago, when 30-year loans averaged 6.79 percent and 15-year home loans - a popular option for Florida refinancing applicants - were 6.44 percent.

The one-year adjustable rate Florida mortgage, on the other hand, rose to 5.71 percent from 5.65 percent a week ago, but remained lower than the 5.82 percent average of a year ago.

The “5/1″ ARM, set at a fixed rate for five years and adjustable each year following that, averaged 6.29 percent, compared with 6.30 percent a week prior and 6.39 percent last year.

A Florida mortgage lender charged an average of 0.4 percent in fees and points on all mortgages. For 30-year and 15-year mortgages, that’s the same as last week, and for hybrid ARMs, they dropped slightly from 0.5 percent.

SOURCE: Reuters