Fort Lauderdale Real Estate Mortgage Report & Mortgage Rate | May 14, 2008 Update
May 14, 2008
When you are looking to by your Fort Lauderdale real estate home or condo you are going to want to get the best mortgage rates that you can find. While you are searching for your Fort Lauderdale real estate home or condo it will be much easier if you know in advance that you are approved for a mortgage and you know that you can buy the home you desire.
I work with America’s #1 Mortgage Broker and I can assure you that Brian Brady will get you the best mortgage possible when you are ready to buy your Fort Lauderdale real estate home or condo.
Here’s what Brian has to say this week regarding the mortgage market here in the Fort Lauderdale real estate area:
Fort Lauderdale Real Estate Mortgage Report & Mortgage Rate Update
Fort Lauderdale mortgage rates dropped, then rose to their original level, last week. I’ve been advising mortgage borrowers to lock all rates at application, regardless of closing date. Did I miss an opportunity to improve clients’ rates? I don’t think so. My approach is more one of limiting losses than improving gains and last week, I thought there was a threat of higher mortgage rates in Fort Lauderdale; I still do.
Inflation data is released today and Unemployment data is due out Thursday. These two figures could be the tempest in the teapot and really affect mortgage rates. We just think there is too much risk to be floating (holding out for a better rate). If markets overreact (and they usually do) we’ll change that recommendation but for now, we think it’s prudent to lock your mortgage rates.
Currently, the 5/1 ARM offers the best value at 4.875% wholesale rate. The 30 year fixed rate loan is 5.875% wholesale rate. While there is risk in losing the rate after 5 years, most borrowers don’t hold a mortgage that long. If you are thinking of moving in the next few years, it would be well to examine the benefits of refinancing your home loan to a low 5/1 ARM rate
Lock all mortgage rates immediately. This is a stagflation fear we’re seeing:
The central bank can’t be “complacent about inflation,” Janet Yellen, president of the Fed Bank of San Francisco, said in a speech yesterday. Recent measures of consumers’ outlook for prices “highlight the risk that our attempts to deal with problems in the real economy could lead to higher inflation expectations and an erosion of our credibility,” she said.Â
Yellen also said she anticipates inflation will slow as the labor market weakens and “commodity prices level off,” echoing comments by other policy makers. Â
Investors project the Fed will keep the benchmark interest rate unchanged at its next meeting on June 25. That would be the first pause since the central bank started cutting rates in September.
Rising prices from overseas, reflecting the drop in the dollar, are another source of concern. U.S. businesses have leeway to boost prices as companies abroad charge more.
The mortgage markets will overreact for the next 5-10 days. Mortgage rates should shoot up quickly.
If you want to lock in on a mortgage for the Fort Lauderdale real estate home or condo that you are buying, then now is the time to do so. The bond traders won’t be merciful next week unless recessionary data is overwhelming. Jump on these low rates now.
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If you are interested in learning more about buying a home or condo in Fort Lauderdale or anywhere in South Florida; or if you need any information about the Fort Lauderdale real estate market, please feel free to contact me and it would be my pleasure to assist you.You can contact me at the number shown below or please feel free to contact me by the form below and I, or one of my assistants, will be sure to get right back to you within a few hours, if not sooner.
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Robin Sing-Cunningham
robins@robinashley.com
Access USA Realty
Local Fort Lauderdale | South Florida : 954-709-7461
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