Florida Mortgage Rates update
It’s finally here! We have been waiting ever so patiently for the interest rates to fall but prior to today they had been stubbornly high. Everyone in the mortgage industry realized that rates should be lower than they have been but due to the amazingly historic events of the past year every time they began to fall some record breakign headline with cause the rates to rise again.
What has finally caused rates to decrease is a responce to the Feds FINALLY using their TARP (troubled asset relief funds) money A.K.A. $750 Bailout funds. They had come out and said that they had changed their mind and were not going to use the funds to buy troubled mortgage assets from lenders as they had told Congress they were going to do. this caused rates to rise. Today they announced plans to implement a program to buy these assets as early as next week! This is the news the financial industry has been waiting for.
In responce the 30 year fixed florida mortgage rate fell to 5.2% today. For weeks it had been hovering around 5.875% so this is a huge one day gain for us. We expect many people will be considering taking advantage of locking in this extremely low fixed rate while it is available. Perhaps people may even attempt to buy homes once again. We can only hope. This will eat up the excess inventory and finally cause home prices to level off and stop their Olympic sled down the hill they have been falling for the past two years.
If you have been following our blog you will notice that we had predicted we would get this price level before the end of the year. Now we have to start thinking about how pretty an interest rate beginning with the number 4 would look on a 30 year mortgage note!