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Mortgage Rates August 15, 2013

Bonds took a complete dive this morning after news started pouring in that the economy might be doing well enough for the Fed to start tapering. Stocks also took a big dive for the same reason, and both are looking weak today.  The Initial Jobless Claims report came in today and was 15,000 better than it was last week. There’s a good chance this will correlate into a strong Jobs report in Sept., which will be the last anyone sees before the Fed makes up it’s mind about tapering.

The Consumer Price Index report (measures inflation) also came in this morning, but was pretty much where everyone expected it to be and low overall. We feel that inflation is not really going to be much of a factor for the Fed. The Housing Market Index for August came in today as well. Keep in mind that this report covers current data, and is not a reflection of things happening in previous months. According to the HMI, home building sentiment is the highest it’s been in 8 years. Many builders are saying they expect high demand and traffic in the market, even with higher interest rates. Speaking of which…

August 15, 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)

Disclosures

Everyone is wondering about the Fed tapering next month and it seems a bit of panic has overtaken some. We can see this in the way everyone is trying to fortify himself or herself in the market. Sadly, this doesn’t help much and, after having been on a decent streak of increasing, bonds are as low as they were two months ago. We suggest locking before the end of the day if you can.  Mortgage rates are projected to go even higher and we don’t see it improving much tomorrow.

Check back tomorrow to get the newest rate updates!