How Does Last Week’s News Affect Central Florida Mortgage Rates?


 For those who’d been monitoring Central Florida mortgage rates ahead of last week’s Federal Reserve interest rate cut, the news that followed was less than definitive. The Fed’s decision to lower their overnight lending rate for the first time since the Great Recession commanded first page headlines—but the details that followed provided little clarity.
For those whose interest in Central Florida mortgage rates is more than academic (homeowners pondering selling; mortgagees thinking of refinancing or applying for a line of credit, etc.), the question was whether now was the optimal time to take advantage of the bargain-basement interest rate environment…or…?
 The equivocation came on two fronts. First were reports on the fallout from Wednesday’s ¼ point drop in the Fed’s benchmark overnight borrowing rate. Wall Streeters didn’t seem to like it—not because it wasn’t good for borrowers of all stripes, but because they’d hoped for an even greater cut. Not just that—there was equivocation on the actual fallout Central Florida mortgage seekers might now encounter.
By week’s end, The Washington Post reported, “Mortgage rates pause as markets digest impact of Federal Reserve meeting.” In other words, prospective home buyers expecting a drop in rates would have to wait.
Bankrate.com had a different take—an even more sour one: “Mortgage rates move upward for Friday.” By their lights, Friday’s prospective buyers might expect a slight bump in rates (though they’d still be in the historically low range).
But wait! The New York Times had excellent Friday tidings: “Mortgage Rates Are Already Lower,” they printed. Their take was joined by industry insiders like the Mortgage News Daily’s, who closed out the week with “Mortgage Rates Are Actually Much Lower Today.”
Why was the reporting so scattered? MNW’s Matthew Graham offered the best explanation. The bonds which underlie mortgages had been slow to budge until late Friday—when mortgage rates dropped “to new multi-year lows.” Graham noted that Friday’s improvements “were driven almost entirely by lenders simply catching up with yesterday’s moves.”
With lenders notching rates down, the implications for Central Florida home sellers and buyers once again present a spectacularly appealing picture. For specifics on how, what, and where—give me a call! 

Prepared by James Williams, Realtor; Office Manager; and Top Producer at REMAX Premier Properties. He focuses on helping sellers and buyers in the Central Florida Market www.HomesInMyOrlando.com James has served as a Board Director at the Osceola Association of Realtors ‘15 - ‘18, and as a State Leader for Florida CRS - Certified Residential Specialist ‘15 - ‘18. Contact him at 321-402-6261 or jaw3remax@gmail.com

Comments

Post a Comment

Popular posts from this blog

Central Florida Homeowners Calculate Rate Cut Benefits

When interest rates were cut after the Fed’s July meeting, the press was quick to point out that not every homeowner would benefit from the move. As Bankrate.com noted in its lead article How the Fed’s Interest Rate Decisions Affect Mortgage Rates, “the majority of Americans won’t be affected.” That’s true—for the moment. But for some Central Florida homeowners, by last week, the immediate effects constituted good news. The Bankrate commentators touched on some of the traditional brain-teasing economics behind the effects (“there is an inverse relationship between bond prices and yields”)—but the practical repercussions were more straightforward. Mortgage lenders reacted with rate cuts, so: • Benefits flowed to the “winners of the rate cut”—some home loan borrowers with adjustable-rate mortgages (ARMs). • Also benefitting were those using home equity lines of credit (HELOCs). • Current fixed-rate mortgage holders may be able to cut their mortgage payments via refinancing.
Read more

For Central Florida Neighborhoods, 4 Features Warrant Scrutiny

  Every serious house hunter is aware that the Central Florida neighborhood surrounding any house has a significant effect on its ultimate value. It follows that the future of a neighborhood will have a measurable impact the future value of the properties in it. Part of the reason not much emphasis is given to this factor is the difficulty of gauging a neighborhood’s future prospects. That’s especially true for homebuyers who are new to the area. Yet there are ways to scrutinize neighborhood characteristics for indications that augur well…or which point to a future which might not be headed in the right direction. Here are four such factors: 1. Incomes . Strong average household incomes are indicative of more than just the current bankrolls of the neighbors. Higher incomes are good bellwethers for households likely to maintain attractive landscaping—and to make future renovations to their properties. 2. Home price histories . For properties currently listed in the same neighbor
Read more

Central Florida Homes for Sale Prospects—the Straight Scoop

  It never ceases to amaze: the way media news briefs can state a set of facts that, despite being literally accurate, leave listeners with a mistaken impression. For local homeowners making up their minds whether the timing is right for putting their own Central Florida homes up for sale, this last week provided a fine example. One newscast in particular would seem to be off-putting. It’s true that when measured against the same period a year earlier, the national home sales levels had been weak. That made the one news blip that came over the satellite radios in many Central Florida autos all the more convincing. Listeners might have concluded that throughout the country, potential home buyers were staging a disappearing act. That kind of discouraging news could well put a damper on those contemplating putting up their own Central Florida homes for sale. The real estate item was the final one in Friday’s on-the-hour news, which repeated hourly. The announcer’s voice del
Read more