Florida Mortgage Rates Decline This Week

Rates on 30-year Florida mortgages sank this week to their lowest point since late May, providing a little ray of sunlight for would-be buyers.

Freddie Mac reported Thursday that 30-year, fixed-rate mortgages averaged 6.52 percent. That’s down from 6.62 percent the previous week and was the lowest rate since the week ending May 31.

Florida mortgage rates then stood at 6.42 percent.

The moderation provides welcome news for prospective home buyers, some of whom also may be facing a situation of harder-to-get credit.

In mid-June, rates on 30-year mortgages climbed to 6.74 percent, the high for this year. Other mortgage rates also went down.

Rates for 15-year fixed-rate mortgages, a popular choice for Florida mortgage refinancing, averaged 6.18 percent, down from 6.30 percent.

For five-year adjustable-rate mortgages, rates dipped to 6.34 percent, from 6.35 percent last week. Rates on one-year adjustable-rate mortgages fell to 5.60 percent, compared with 5.67 percent.

Florida home loan rates eased following last week’s decision by the Federal Reserve to slice its lending rate to banks.

“Interest rates on conforming long-term fixed mortgages and one-year ARMs trended down by about one-tenth of a percent in the past week,” said Frank Nothaft, Freddie Mac’s chief economist.

“This is as a result of yields on Treasury securities coming down, and the Fed’s decision to cut the discount rate,” he explained.

The Florida home mortgage rates quoted here do not include points.

Last week, 30-year mortgages carried an average fee of 0.4 points, while 15-year mortgages had a fee of 0.5 points. Five-year and one-year ARMs each carried an average of 0.6 points.

ONE YEAR AGO, rates on 30-year Florida mortgages stood at 6.48 percent, while 15-year mortgages were at 6.18 percent, five-year ARMS averaged 6.14 percent and one-year ARMs were at 5.60 percent.

SOURCE: Forbes