First of all, I hope everyone had a very nice Thanksgiving. Even with all of these economic problems, we are still the envy of the world and living here sure beats second best no matter what you care to offer as an alternative. On Tuesday morning when it was announced that there was going to be a backstop to the mortgage market (yet again), rates dropped down into the very low 5%’s. But did they really drop? The harsh reality of the situation is that later that day, after the knee-jerk reaction, most lending opportunities for Florida mortgages were re-priced higher. Yes banner interest rates are lower this week but in the new mortgage paradigm, that is for A+ buyers with at least 80% equity. It used to be that a few credit bruises didn’t hurt a Florida mortgage applicant but now that is all changed. Fannie and Freddie’s tiered pricing makes these really low rates only available to the few. Also, if you remember a few years ago, when the 10 year Treasury was in the low 3%’s - 30 year fixed rates for Florida mortgage borrowers were in the high 4%’s. Spreads are still very wide between US Treasuries and actual interest rates. The other real problem is the appraised value. One short sale or foreclosure on your street and your house just lost a ton of value. Going forward, its going to probably get tougher. If you are thinking of refinancing your Florida mortgage - do it sooner rather than later. Sign up for our target rate or get a Good Faith estimate. There is no hard sell - you do not have to phone us - just send us an email and we will help you out. Gotta go - Christmas shopping starts today!