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Mortgage Rates August 13, 2013

Bonds dropped lower today after it was projected they continue to climb. Mortgage bond prices have been up, but the number of sellers has soared as everyone gets anxious about the Fed tapering (IF the Fed begins tapering). Stocks have rebounded a bit as well, which is likely weighing on bonds even further. We haven’t lost all of the gains that were made yesterday, but potentially this means we just have a bit of wiggle room before we’re really in trouble. Definitely not the news we were hoping for.

The Retail Sales report is in, and it looks like they’ve risen once again. The report shows a gain of .02% in July. It may not sound like much, but it’s the fourth straight month we’ve seen retail sales go up. If you don’t include the auto industry in the report, the figure goes up to .05%. Modest gains, but welcome ones. In all other respects, it doesn’t appear the figures have had much effect on the market. We’re leaning toward locking rates today, just in case bonds end up falling further.

August 13, 2013 our updated mortgage rates in Florida are:

  • 30 Year Fixed Rate Mortgage – 4.125% (4.338% APR)
  • 15 Year Fixed Rate Mortgage – 3.125% (3.536% APR)


Investors and lenders are definitely getting worried about the Fed tapering (reducing its purchases of mortgage bonds and treasuries) in the fall. Of course, there is an inherent risk to the real estate market, which has otherwise been doing well, and we know we can expect to see an increase in rates. However, we still suspect this will be somewhat offset by the Fed reducing the target Unemployment Rate from 6.5% to 6%. We also suspect that the Fed will not leave us totally stranded. While the number of purchases will be reduced, the Fed has no plans to stop buying all bonds immediately. Rates, while they will go up, shouldn’t be unbearable for most of us. We’ll all have to wait and see, naturally, but there’s no reason to get worked up about anything just yet.

Check back tomorrow to get the newest rate updates!