Florida Mortgage : Learning Center

Fears that Fannie Mae and Freddie Mac may be in trouble have sent a ripple through the financial markets today that make Hurricane Bertha waves seem tame.  Fear has an interesting affect with the financial markets and unfortunately we will see Florida mortgage interest rates move up as a consequence.

Fannie Mae and Freddie Mac borrow money in the bond markets to pay for mortgages they themselves purchase from wholesale mortgage lenders or banks.  These are then sold to investors or hedge funds. Since the bond markets have increased the cost to Fannie Mae and Freddie Mac; they will in turn charge higher rates to lenders who of course will raise consumer fixed mortgage rates.

This lack of confidence in the markets also sent VA fixed rate mortgages soaring this afternoon.  This morning we were offering 30 Year Florida VA fixed rates at 6.500% with no discount points and no origination fees.  This evening Florida VA fixed rates jumped to 6.875%.

It’s amazing what fear in the financial markets will do regarding fixed rate markets.  It spreads like wildfire and forces wholesale lenders and banks to raise their fixed rates.  I do believe things will calm down eventually.  But we will have to wait and see just how high fixed rate mortgages will go before a hopeful ease in market fears helps us all.

If you want to know where Florida fixed rates are we can provide a free Good Faith Estimate for review.  Call one of our mortgage professionals today at 888.399.0520 or visit or website at BeechTree Mortgage, Inc.