In nearly all things financial, watching for specific market trends really does pay off. Take Florida mortgage rates today, for example – they’re way down as a result of the Fed’s most recent rate cut. Normally they trend up when the Fed cuts its rate, but not in this case. So, if you’ve been watching … then good on ya! You know that when it comes to Florida mortgage rates like the ones we’re seeing here… sometimes it’s better to “apply for your Florida mortgage or Florida refinance now!”
Well, actually, Tuesday was the time to pull the trigger. They’re back up again.
Florida Mortgage Rates Dropped, Then Bounced Back
This past Tuesday, Florida mortgage rates surged downward to their lowest levels in 4 years. This happened because Uncle Ben let us know that he and the FOMC put it on the line by letting us know that the Federal Reserve will do absolutely anything required to breathe life into our present economy.
On Wednesday, however, this picture changed dramatically.
You see, when traders had time to take in the long-term implications of a near-zero percent Fed Funds Rate and the aggregate cost of government intervention to-date, they grew uneasy about what this latest government action would do in terms of reducing the value of the dollar – thus leading to increased inflation — the enemy of low mortgage rates.
As a result, mortgage markets unraveled.
At first, everyone moved toward the exit in an orderly fashion. Then, in an instant, investors began a full-on rush for the exit gates! By the end of the day, mortgage rates increased by as much as 1/2% – virutally wiping out of of Tuesday’s big gains.
In hindsight, my friends – we should not be surprised at all by this bounce back, which represents the same trading pattern we’ve seen twice already this year. The first of these surges took place after the Fed’s “surprise” rate cut in January, and the second manifested after the federal takeover of Fannie Mae and Freddie Mac last September.
If you missed this last “golden opportunity to refinance,” please remember this: Sharp rate drops are forever harbingers of rate increases – or bounces.
Sadly, many uniformed Florida mortgage refinance shoppers will continue to miss these “dips” time and time again. They’ll try to stay on top of things – but ultimately, they will fail.
But, it’s not their fault. They just don’t have a qualified Florida Mortgage or Home Loan Specialist in their corner to notify them when such events take place!
Luckily, the Florida mortgage market rides on an up and down trend, and “the dips” will come again. We’ve seen the patter three times in recent history, and if you’ve missed it each of these three times – you need to contact me so I can help you make sure this doesn’t happen to you again!
I will advise you as to when rates start their next downward movement pattern, and if we come across a rate you like, we’ll need to get it locked as soon as possible. Do your planning now, because as we’ve seen…
Sleeping on it for even one night may end up costing you dearly.
If you are considering a Florida Home Mortgage Refinance, call me today at 863-604-3019 so we can put things together. As always, I remain — Your Friendly Neighborhood Florida Mortgage Broker!
(Image courtesy: The New York Times)
Apply for a Florida Mortgage Today
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Kevin Sandridge
The Florida Mortgage Pro
Signature Home Funding
410 Laurel Cove Way
Winter Haven, FL, 33884 |
Mobile: 863-604-3019
Fax: 888-496-0265
kevin.s@sigfunding.com
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We are not the FHA, VA, USDA, HUD or any other government organization. The content on this blog is intended for information purposes only. 
