Florida Mortgage Rates Inch Higher This Week

Florida home loan rates crept up a bit this week.

But mortgage giant Freddie Mac was quick to point out on Thursday that the mild rise was not inspired by troubles with risky sub-prime mortgages.

Average rates on 30-year Florida mortgages, the benchmark of the state’s (and nation’s) lending arsenal, rose to 6.62 percent from 6.59 percent.

“Problems in the non-prime mortgage market, where funds are expensive and hard-to-get, have not significantly affected the prime conforming market,” Frank Nothaft, Freddie Mac vice president, said in a statement.

Rates on 15-year mortgages - a popular Florida refinance option - averaged 6.30 percent, compared with 6.25 percent last week.

Average rates on lenders’ one-year, adjustable rate Florida home loans (ARMs) also rose, to 5.67 percent from 5.65 percent.

The “5/1″ ARM, set at a fixed rate for five years and adjustable each following year, also inched up, to 6.35 percent from 6.33 percent.

Average rates on 30-year Florida mortgages this week remained above their year-ago level, when they were at 6.52 percent.

At the same time last year, the 15-year mortgage averaged 6.20 percent, the one-year ARM was at 5.65 percent and the “5/1″ was at 6.18 percent.

A Florida mortgage lender charged an average of 0.4 points on 30-year home loans this week, the same as last, and 0.5 on 15-year loans, up from 0.4.

Origination fees or points on the “5/1″ mortgage remained at 0.5, while those on the one-year ARM rose to 0.6 from 0.5.

SOURCE: Reuters