Florida Mortgage Rates: After Recent Increases, Mortgage Rates Finally Steady
January 19, 2011 (FreeRateUpdate.com) – Florida mortgage rates increased slightly this week by 0.125 percent over last week. The conforming mortgage rate currently in Florida for a 30-year fixed rate mortgage is 4.625 percent and 4.000 percent for a 15-year fixed rate conforming mortgage loan. An 5/1 adjustable rate mortgage in Florida has a mortgage rate at 3.125 percent. Florida borrowers who are well qualified can obtain a mortgage loan with these low rates at only 0.7 to 1.0 origination points.
The Florida FHA mortgage rate has also experienced a slight increase over last week. For a Florida 30-year fixed FHA mortgage loan the FHA mortgage rate is 4.500 percent, which is an increase of 0.125 percent from last week. For a Florida 15-year fixed FHA mortgage the FHA mortgage rate is 4.000 percent, which is an increase of 0.250 percent from last week. A FHA 5/1 adjustable rate mortgage loan is currently at 3.000 percent, which has remained unchanged over last week. FHA mortgage loans remain popular amongst Florida borrowers due to their favorable terms. However, prospective Florida home mortgage borrowers should be aware that FHA mortgage rates will be higher than conforming mortgage rates due to higher closing costs. Additional fees that the Federal Housing Administration charges include upfront mortgage insurance premiums, annual mortgage insurance premiums, additional residential appraisals, and so on. These additional expenses are charged to the Florida mortgage borrower.
Florida jumbo mortgage rates have remained unchanged from the previous week. A 30-year jumbo mortgage has a mortgage rate of 5.125 percent. A 15-year jumbo mortgage has a mortgage rate of 4.750 percent. For a Florida jumbo mortgage loan with a 5/1 adjustable rate mortgage, the mortgage rate is 3.875 percent, which is also unchanged. For a majority of the United States, the limit is $417,000 for average areas and $729,250 for higher cost areas, such as New York City and Washington D.C. Although a majority of the counties in Florida are considered average areas, Key West is considered a higher cost area and has a limit of $729,250. Any mortgage loans that are above the conforming loan limit are considered authentic jumbo loans.
The slight increase of mortgage rates this week is primarily caused by a decline in home construction throughout the state of Florida. Homebuilders have a dismal outlook of the near building future. In addition, mortgage back securities have been quite volatile recently. Mortgage backed securities and mortgage rates have an inverse relationship, which means that they move in opposite direction. Therefore, when MBS prices are down, Florida mortgage rates are up. Plus, as home construction continues to struggle, mortgage rates are not likely to decrease in the near future.
FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1 point origination.
Click here for current Florida mortgage rates.
Florida jumbo mortgage rates have remained unchanged from the previous week. A 30-year jumbo mortgage has a mortgage rate of 5.125 percent. A 15-year jumbo mortgage has a mortgage rate of 4.750 percent. For a Florida jumbo mortgage loan with a 5/1 adjustable rate mortgage, the mortgage rate is 3.875 percent, which is also unchanged. For a majority of the United States, the limit is $417,000 for average areas and $729,250 for higher cost areas, such as New York City and Washington D.C. Although a majority of the counties in Florida are considered average areas, Key West is considered a higher cost area and has a limit of $729,250. Any mortgage loans that are above the conforming loan limit are considered authentic jumbo loans.
The slight increase of mortgage rates this week is primarily caused by a decline in home construction throughout the state of Florida. Homebuilders have a dismal outlook of the near building future. In addition, mortgage back securities have been quite volatile recently. Mortgage backed securities and mortgage rates have an inverse relationship, which means that they move in opposite direction. Therefore, when MBS prices are down, Florida mortgage rates are up. Plus, as home construction continues to struggle, mortgage rates are not likely to decrease in the near future.
FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard .07 to 1 point origination.
Click here for current Florida mortgage rates.