When the Feds finally made their move and lowered the Fed Funds rate last Tuesday; many Florida homeowners expected the fixed rate mortgage interest rates to follow suit.  Well, as mortgage loan seekers are finding out, fixed rate mortgage actually have increased.

The reasoning is simple.  The mortgage markets had expected the Fed to reduce the Fed Funds rate several weeks ago.  So over the past couple of months we have enjoyed an improving interest rate environment; while the mortgage markets expectation of a reduction was imminent.  The Feds did surprise many with a .50% drop, however, the mortgage markets had already dramatically reduced their fixed rates, even lower.

The difference in already reduced fixed rate pricing and the Feds reduction; is actually about howhigh rates increased over the past 3 days.  For those still seeking mortgage consulting for their new Florida home or perhaps a debt consolidationg refinance; fixed rate mortgages are still relatively low.  Call your favorite mortgage professional for advice and make sure you get your Good Faith Estimates in writing.

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