Here's Why Tampa Mortgage Rates Are Up Over 1.125 Percent In 10 Days
June 9th, 2009 Categories: Tampa Mortgage News
Tampa Mortgage Rates Rising
Clearwater Florida – If you are in the market to buy a Clearwater Beach Condo or Tampa Bay home you’ve probably noticed that since Memorial Day, conforming Tampa mortgage rates have jumped by more than 1.125 percent, adding thousands of dollars to the annual cost of home ownership.
To the casual observer, the moves may seem random. However, you may not realize there is a reason this is happening and it all starts with inflation.
As an economic force, inflation erodes the value of the U.S. Dollar. Left unchecked, it drives up the Cost of Living as each dollar “buys less” at the supermarket, gas station, or anywhere else.
But with respect to local home mortgage rates, inflation’s impact is more immediate. Because inflation devalues the dollar over the long-term, it renders long-term mortgage bonds a less attractive investment for traders.
If bond investors are repaid in U.S. Dollars, after all, it would make the investment worth less if the dollar is in an inflationary freefall.
Therefore, in situations when inflation is likely to present, we find that traders often sell out of their mortgage bond positions which, in turn, drives down the bond prices. Then, because bond yields move in the opposite direction of bond prices, rising rates are the inevitable result.
Lately, Wall Street is fearing inflation for a number of reasons:
- Job losses are slowing, adding to consumer spending expectations
- Gas prices have risen 41 days in a row
- The federal government is increasing the money supply
These 3 factors — plus a few others — are all coming to a head around the same time and traders are getting defensive with their portfolios. As a result, they’re selling their mortgage bond positions and it’s driving mortgage rates higher.
Rates may continue to trek toward 7 percent through July and August, or they may retreat toward 5 percent. We can’t know for sure. What we can know, though, is that volatility in rates should continue until the economic picture gets more clear. That could be next week, or next year.
For now, be ready to lock your home loan at a moment’s notice. Tampa Mortgage rates and rates around the country are changing quickly.
About Cyndee Haydon
Cyndee Haydon, Realtor with Future Home Realty specializing in luxury waterfront and beach homes of Clearwater Beach - St Pete - Tampa Bay area with her husband and partner, Jack Haydon Cyndee's Google Profile
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In Clearwater Florida Over 24 Hours saw Tampa Mortgage Rates Shoot Higher
May 21st, 2009 Categories: Clearwater Florida, Pinellas County Real Estate, Tampa Mortgage News
The Ying and Yang of Clearwater Tampa Mortgage Rates
Clearwater Florida – Tampa Mortgages: Rates go up, Mortgage rates go down – it seems we’re living with the constant Ying and Yang of the mortgage and Clearwater real estate market. If you’re one of the lucky ones, you’ll catch them while they’re down and while they last.
After Wednesday’s mortgage market rally drove rates down by a bunch, Thursday’s sell-off pushed them right back up.
This has been a common pattern in the skittish world of mortgage rates this year.
With the U.S. economy still teetering between recession and growth, markets are looking for signals anywhere it can find them – mortgage markets and real estate markets are no different. Thursday’s clue came from a government report showing that more Americans are collecting unemployment benefits than at any point in history.
Strangely, mortgage rates rose on the news.
We call it “strange” because weak economic data has tended to draw mortgage rates lower lately to the benefit of prospective home buyers and would-be refinancers. Lower rates make Clearwater homes more affordable.
Thursday, though, the pattern broke.
Why Did Mortgage Rates Rise Today in Clearwater and Tampa?
The main reason why Florida mortgage rates rose Thursday isn’t because of the employment report or any other piece of data. Rates rose Thursday for the same reason that they had dropped the day prior — the Federal Reserve.
On Wednesday, the released minutes from the Fed’s last meeting suggested that the group might make a larger mortgage market intervention. On Thursday, in the face of worsening jobs data, markets bet the Fed wouldn’t.
Clearwater – Tampa Mortgage rate shoppers and home buyers, unfortunately, got caught in the crosshairs.
Rates can — and do — change quickly, without warning. And, thus far this year, the changes have been extra sudden. This is one reason why it’s often prudent to lock your Clearwater Tampa mortgage rate as soon as you find one that’s agreeable. Wait too long, and it could be gone.
Expect more volatility today with traders leaving early for Memorial Day Weekend. Less volume means more chances for rates to change.
Clearwater Florida – Thinking of Buying or Selling a house – We can help
If you have been thinking about buying or selling a property in the Clearwater St Petersburg Tampa area…
Contact us for a FREE quote and to find out your Tampa Mortgage options and you can search all Tampa St Petersburg and Clearwater homes for sale right now..
Call Us Today at (727) 710-8036 to hear more about how we can help you!
Copyright © 2009 Jack and Cyndee Haydon, Clearwater REALTORS and your Clearwater Beach Real Estate Consultants specializing in Clearwater Beach Florida St Petersburg Tampa Real Estate and may not be copied, reproduced, distributed, transmitted, displayed or published.
About Cyndee Haydon
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Clearwater Florida – Today Reminds Us to Prepare Your Family and House For A Natural Disaster
April 13th, 2009 Categories: Clearwater Florida, Community News, Tampa Bay
Clearwater experienced Tornado Warnings Today – Were you Prepared?
Clearwater Florida – Wow we had a crazy rainy tornado day in the Tampa Bay area today. Jack and the boys were in Tarpon Springs just outside Pasco County today at our Homeschool Co-op and we heard from families and friends about people whose homes were effected. If you’re like me you propably spent at least part of today worried about someone you knew in the hardest hit areas in Tampa Bay.
We are used to preparing for hurricanes regularly here, however, tornadoes give little to no warning so it’s a great reminder to be prepared for Natural disasters that may hit Clearwater families when we least expect it.
In 2003, the Department of Homeland Security launched Ready.gov, a government website aimed at family, business and community disaster readiness.
When You’re at Home in Clearwater Florida are you Disaster Ready?
Now, when the Ready.gov website talks about disaster readiness, it’s referring to more than just physical attacks on the county — it’s talking about natural disasters, too. This includes hurricanes, tornados, earthquakes and floods and these weather-related events impact the different parts of country each year like we experienced here in Clearwater today.
The Ready.gov website is loaded with tips, notes and checklists, including the 3-minute “It Takes Just Three Steps To Get Ready For An Emergency” video featured above.
If you’ve never watched it, take the time to watch it today. Then, test your home’s disaster readiness, take this 10-question quiz. There’s no “passing grade”, per se, but with your own answers, you’ll see where there’s room for improvement.
Disasters can’t be predicted and most of us will face them at least once in our lives. When disaster strikes, therefore, make sure you prepared for it in advance. Protecting your household is a matter of just 3 simple steps. Prepare today and keep your loved ones safe!
Thinking of Buying or Selling a house in Clearwater Florida – We can help
If you have been thinking about buying or selling a property in the Clearwater St Petersburg Tampa area…
Contact us for a FREE quote and to find out your Tampa Mortgage options and you can search all Tampa St Petersburg and Clearwater homes for sale right now..
Call Us Today at (727) 710-8036 to hear more about how we can help you!
Copyright © 2009 Jack and Cyndee Haydon, Clearwater REALTORS and your Clearwater Real Estate Consultants specializing in Clearwater Beach Florida St Petersburg Tampa Real Estate and may not be copied, reproduced, distributed, transmitted, displayed or published.
About Cyndee Haydon
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Clearwater Real Estate News | Guess What Percentage Of Tampa Mortgages Are Paid On-Time?
March 3rd, 2009 Categories: Real Estate News, Tampa Mortgage News
Clearwater Florida Real Estate News
Clearwater Florida – The current economic conditions are being felt all over and it’s also being seen in the rise in mortgage delinquencies nationwide, but the mortgage news may not be as bad as it appears at first glance.
Using anonymous data from its national credit database, TransUnion reports that 4.58 percent of American homeowners were at least 60 days past due on mortgage payments last quarter.
Comparing the statistic to the data from a year ago, the credit reporting agency goes on to say that mortgage delinquencies are up 53 percent and Florida is adding to this.
Although fair, the comparison carries a distinct, negative connotation because if we flip the data to its positive, the statistics don’t seem nearly as menacing.
Consider: In the last quarter of 2008, 4.58 percent of all homeowners were delinquent on their respective mortgages. The positive sign, therefore, is that 95.42 percent of home owners were not delinquent on their home loans.
Furthermore, in looking at TransUnion’s data for the 5 largest states in the Union, it’s clear that the national delinquency rate is being skewed by California and Florida. New York and Texas, for example, exhibit delinquency rates below the national 4.58 percent marker.
North Dakota’s delinquency rate hovers near 1 percent.
Headlines are designed to attract eyeballs and nothing else – they seem to focus on the fact that the “glass is half empty” . To get the complete story, therefore — the real story — it never hurts to dig a little deeper into the facts. Even looking at Florida’s numbers – why doesn’t the news ever mention the 91%+ of Florida home owners that are paying their bills on time. When looking at “the glass as half full” we see that their are great bargains for Clearwater home buyers buying now, especially for first time home buyers (anyone who hasn’t owned a home in 3 years) qualifying for the $8000 tax credit for property purchases in 2009 (need more info on this just ask us).
Thinking of Buying or Selling a house in Clearwater Florida – We can help
If you have been thinking about buying or selling a home in the Clearwater St Petersburg Tampa area…
Contact us for a FREE quote and to find out your Tampa Mortgage options and you can search all Tampa St Petersburg and Clearwater homes for sale right now..
Call Us Today at (727) 710-8036 to hear more about how we can help you!
Copyright © 2007-2009 Jack and Cyndee Haydon, Clearwater REALTORS and your Clearwater Real Estate Consultants specializing in Clearwater St Petersburg Tampa Florida Real Estate and may not be copied, reproduced, distributed, transmitted, displayed or published.
(Image courtesy: TransUnion)
About Cyndee Haydon
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How The Treasury's Economy Revival Outline Helped Clearwater Home Affordability
February 11th, 2009 Categories: Clearwater Florida, Tampa Mortgage News
Clearwater Florida – His speech was much anticipated, but it was what Treasury Secretary Tim Geithner didn’t say Tuesday that helped Clearwater home affordability.
Mostly it was because of “safe-haven” buying on Wall Street.
Safe-haven buying is when investors move cash to the safest investments possible for fear of losing their money elsewhere.
This existence of the pattern is evident in looking at yesterday’s Dow Jones Index timeline. Stock markets were down some in the morning. Then, at 11:00 AM ET, in the moments immediately following the public release of Geither’s speech as text, stock market plunged by about 2 percent.
As the speech was delivered live, markets fell by 1 percent more.
It’s not that Geithner’s speech was a bad one, per se. It’s just that Wall Street was looking for a detailed plan that included remedies for banking, housing, and the economy overall. What it got instead was an outline for a plan and a frank discussion about the complexity of the economy.
Stock markets had been bid up last week in anticipation of a bailout. Tuesday’s action was the subsequent sell-off because economic uncertainty continues to linger.
It all ended up being good news for Tampa mortgage rate shoppers, though. When the dollars fled the stocks, they made their way towards safer, less-risky investments like mortgage bonds. And, because mortgage-backed bonds set the “going rate” for conforming mortgages nationwide, the added demand yesterday caused mortgage rates to fall, making mortgaged homes less expensive on a monthly basis, relative.
For now, rates remain near the bargain levels set in early-January. As the Treasury clarifies its plan in the coming weeks, however, rates are susceptible to big swings.
(Image courtesy: The Wall Street Journal)
Thinking of Buying or Selling a house in Clearwater Florida – We can help
If you have been thinking about buying or selling a home in the ClearwaterBeach Florida St Petersburg Tampa area…
Contact us for a FREE quote and to find out your Tampa Mortgage options and you can search all Tampa St Petersburg and Clearwater homes for sale right now..
Call Us Today at (727) 710-8036 to hear more about how we can help you!
Copyright © 2009 Jack and Cyndee Haydon, Clearwater Beach REALTORS and your Clearwater Beach Real Estate Consultants specializing in Clearwater St Petersburg Tampa Real Estate and may not be copied, reproduced, distributed, transmitted, displayed or published.
About Cyndee Haydon
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