Florida Mortgage Rates: Mortgage Rates in the FL Market Still Strong Just Not as Strong

Mortgage rates in the Florida market seemed to have settled for the time being after a dramatic push upwards from the tail end of 2009 into the new year. See-sawing on the psychological barrier between the 4’s and the 5’s prospective buyers and homeowners wishing to refinance must decide if this is the onset of the eventual climb in rates that will occur as our economy begins its recovery. It’s interesting to note that after experiencing rates firmly lodged in the 4.5% range for an extended time it is only after rates increase that many potential borrowers realize the opportunity they might have missed and proceed to lock at a higher level as a form of damage control.

WHERE THE ROAD TO 2010 LEADS

The question of home values dipping once again at some point in 2010 is currently a much discussed topic throughout Florida. The loss of the tax credit in the spring as well as the inevitability of mortgage rates rising (after the government has stated it will discontinue its current policy of spending billions on mortgage backed securities) will plausibly contribute towards the 1st quarter of 2010 existing as the high water mark of real estate activity for the year. With many if not most of the sales in this market stemming from bank REO’s and short sales it would make sense for those wanting to take advantage of these incentives to not waste much time as from start to finish these transactions can take several months to complete.

THE QUESTION OF CONDOS

The question of condo financing is also one receiving much press as of late in Florida. Due to the spate of condo conversions several years back our State is positively beleaguered with units on the market. Thanks to the cheap selling prices the 2009 numbers looked much better than the year prior. The only issue, and it is a big one, is the problem with obtaining financing. If the rental percentage or the funds in reserve for the association don’t reflect the numbers Fannie/Freddie or even the FHA want to see then getting a mortgage isn’t going to happen. You can be an A+ borrower all the way but the fiscal health of the condo association also is going to play a big part in your ability in getting a loan. This is where local banks have successfully stepped in to help as they often portfolio their loans and don’t need to worry about answering to the secondary market questioning the strength of the file.

All this aside, our office is successfully handling condo sales in Florida. For many, purchasing a 2nd home or a home to retire to in Florida necessitates the purchase of a condo. Knowing where to look and how to ask the right questions is critical in doing this the right way, especially in today’s market. For a realtor referral or questions about this or anything relating to financing in Florida feel free to reach me at mklein@sc-he.com or at my site, http://www.sc-he.com/.