Florida Mortgage News Update

by Snets ~ June 24th, 2009. Filed under: Blog.

After running back up, Florida mortgage rates recovered somewhat this week. All eyes are on the Fed announcement (6/24 – 2:15 EST). This places rates about 1% lower than a year ago. However, there are still concerns that the interest rate increases over the past month could work against a recovery in the housing market. In our view, rates have further to fall, as the concerns about eventual inflation that drove yields up and mortgage rates higher have been tempered by the reality of continued weakness in the economy. Also, if borrowers expect to obtain much-needed financing, rates will have to fall below 5.00% to make a difference.

As I said, the FOMC begins a two day meeting with a statement being issued Wednesday. We expect no change to the Fed Funds Rate, but of great interest will be any announcement of an increase in the Fed’s buying of Mortgage Backed Securities or longer-term Treasuries. Such an announcement would positively impact mortgage rates. Yesterday, President Obama seemed to indicate that more had to be done to help the housing market. We’ll see – the Fed is supposed to be politically neutral but so is the Easter Bunny!

Volatility remains the game of the day, as an assortment of economic data is released this week. From inflation to Personal Income and Spending, investors will be able to gauge a large portion of the economy in the space of four days.

Remember we do FHA/VA now and we still have the Bayside Service that we are famous for. Do you need a Florida Mortgage – give us a try – can’t hurt!

Leave a Reply

You must be logged in to post a comment.