Florida mortgage interest rate shoppers learned a valuable lesson this week: When mortgage rates take a nose dive unexpectedly, they tend to recover just as quickly.
Wednesday, conforming mortgage rates plummeted to very near their lowest levels since WWII - thanks to the Federal Reserve's $750 billion pledge to help the mortgage market. Di your Florida mortgage broker lock in your rate? Hope so, because not 24 hours later, those rates expired.
Yup. You heard me right. See, after considering the long-term implications of the Federal Reserve -- quite literally -- printing new money to help out the recession, mortgage markets grew fearful that the Fed's plan may eventually lead to... wait for it... Inflation. And, as we've said here many times - inflation is the enemy of mortgage rates.
So, if you were just dying on the edge - yes... the very edge of your seat to know why Florida mortgage interest rates shot up as quickly on Thursday as they fell the day before, now you know!
And, as Duke, Scarlet, Snake Eyes (OK, so - he never actually "talked") and the rest of the G.I. Joe gang always said at the end of those cheesy Public Service Announcements (PSAs) I watched as a kid...
"Knowing is half the battle!" (Watch the Video PSA on this post's page if you wanna geek out!)
A look in the rear view mirror on this one also shows us that rate shoppers might have seen it coming, if only because we've seen the exact pattern oh... FOUR TIMES since January of 2008:
After the Fed's "surprise" rate cut in January 2008
After the Fannie Mae and Freddie Mac takeovers in September 2008
After the Fed announced its first $500 in support in November 2008
After the Fed zeroed out the Fed Funds Rate in December 2008
So class, our lesson here is: When mortgage rates drop sharply in short order, they bounce back up at the same pace.
Unfortunately, not every would-be homeowner looking to refinance their Florida mortgage saw the increase coming. People that locked Wednesday captured the lowest rates in 6 decades. Everyone else... well... wishes they had.
I say it a lot here, and I really try not to come off sounding like a used car salesman:
From day-to-day, we don't know if Florida mortgage rates will rise or fall. Hey... nobody knows that. But, we do know that mortgage rates tend to follow patterns, and we've seen the above pattern 5 times now.
When mortgage rates plummet like they did Wednesday, they rarely stay at lows for long. When you find a rate you like, get in and get locked as soon as possible. By tomorrow, it's likely to be gone.
Need someone to watch the rates for you? I'm your guy. Call me at 863-604-3019 or apply online for your Florida mortgage. We'll keep you posted and let you know when it's time to pull the trigger!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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