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Florida Mortgage Rates Rise as “Uncle” Ben Bernanke and Crew Hint at Improving Economy

Written by ksandridge on

From: floridamortgageblogger.com

Florida Mortgage Rates - Ben Bernanke Florida Mortgage rates are on the rise after the Federal Reserve released the internal notes of its September 22-23, 2009 meeting.

Referred to as the ”Fed Minutes”, the report provides a massive level of detail and insight into how the Fed may move next, and as such, is a favorite among Wall Street analysts.

Here’s a very brief breakdown of how the FOMC Press Release and the Official “Fed Minutes” pan out in terms of length:

Press Release: 383 words
Minutes: 6934 words

In the past week, a current of optimism has been flowing through the Fed chambers – as more than a few Federal Reserve members have been hinting that the Fed Funds Rate may rise as early as April 2010. Fed Chairman Ben Bernanke has alluded to this as well.

September’s “Fed Minutes” boil down to a general feeling among Fed members that the economy may improve even faster than anyone previously expected. As a result, Florida home loan rates are on the upswing.

The Fed Funds Rate move upward in order to accommodate a growing economy. As the US economic picture become brighter, the prospect of economic recovery causes investors to move money away from mortgage-backed bonds (considered “safer” investments) and into stocks (generally considered “riskier” investments).

Less demand for bonds means a lower prices which, in turn, leads to higher rates.

The message here? Simple. If you see a mortgage rate you like in the next week or so, lock it in. We hit a low of just under 5% in some cases, but rats are already moving back up towards 5.5%.

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