Florida Mortgage Borrowers May Want to Lock in Rates Very Soon

Florida mortgage borrowers may want to lock in rates as soon as 2:15 PM ET today.  Why?  Well, “Uncle” Ben Bernanke and company (AKA the Federal Open Market Committee) will begin their 2-day meeting today in Washington D.C.  If history repeats, as it often does, their post meeting notes will amp up Florida mortgage rate volatility.

The FOMC’s post-meeting statements are brief but comprehensive – giving Florida mortgage companies and borrowers a bit of insight into what’s going on at the Federal Reserve.  While the results on these meetings are far from transparent – even with the extended meeting minutes in hand – Wall Street analysts put forth a great deal of effort picking apart every sentence for clues.

It’s why FOMC meetings tend to shake up the mortgage markets — for good and for bad.

After its September 2009 meeting, the FOMC issued the following in its press release:

1. Financial markets have improved
2. Housing activity has increased
3. Economic activity has “picked up”

Since September, we’ve seen these events and their positive effects on the economy increase with added momentum.  Credit risks have reduced further, home sales here in Florida and elsewhere around the nation are picking up, and, despite high unemployment numbers, the Fed continues to feel good about the prospects for a full economic recovery.

What Florida mortgage borrowers should watch for today…

As always, Wall Street’s best will be looking closely at today’s FOMC press release.  If the Fed hints at a belief in strong growth with inflation in 2010, mortgage rates should rise. Reference to slower growth should help keep rates steady.

Yes – it’s true… a bad economy or economic forecast means lower mortgage rates.

The FOMC is expected to leave the Fed Funds Rate within its target range of 0.000-0.250 percent — the lowest it’s been in history.  However, it’s what the Fed says Wednesday that will matter more than what it does.

If you’re floating a Florida mortgage rate or wondering if the time is right to lock, the safe approach is to lock prior to 2:15 PM ET Wednesday.  As a licensed Florida mortgage broker, I look forward to getting you situated so that you can take advantage of the best rate available.