Clearwater Beach Buyers Don’t Blink or Record Low Mortgage Rates Could Be Gone

Clearwater Beach Florida – For the fifth time in just 7 months, those shopping Tampa mortgage rates learned an important lesson this week: When mortgage rates plummet unexpectedly, they often recover just as fast. Don’t blink or those rates could be gone!

Recently the Federal Reserve’s newest $750 billion mortgage market pledge helped to push conventional Clearwater home loans and conforming mortgage rates near their lowest levels since WWII. Then we saw how 24 hours later, however, those rates were expired.

After considering the long-term implications of the Federal Reserve — literally — printing new money to service the recession, markets grew fearful that the Fed’s interventions will eventually lead to inflation. Inflation, of course, is the enemy of all mortgage rates.

Related Tampa Mortgage News:

What can the History of Tampa / Clearwater Mortgage Rates teach us?

So, if you’re looking for the explanation of why recent Tampa /Clearwater mortgage rates rose as suddenly one day as they fell the day prior, this is it. And, in hindsight, Tampa bay mortgage rate shoppers might have seen it coming, if only because we’ve seen the exact pattern 4 other times:

  1. After the Fed’s “surprise” rate cut in January 2008
  2. After the Fannie Mae and Freddie Mac takeovers in September 2008
  3. After the Fed announced its first $500 in support in November 2008
  4. After the Fed zeroed out the Fed Funds Rate in December 2008

Sharp drops in mortgage rate, it seems, are followed by immediate bounce-backs.

Unfortunately, not every would-be refinancing Clearwater home owner saw the increase coming. People that locked captured the lowest rates in 6 decades. Everyone else wishes they had.

From day-to-day, we don’t know if Tampa mortgage rates will rise or fall. Nobody knows that. But, we do know that Tampa mortgage rates tend to follow patterns and we’ve seen the above pattern 5 times now.

When mortgage rates plunge like they did, they are rarely low for long. When you find a mortgage rate you like, get in and get locked as soon as possible. By tomorrow, it’s likely to be gone.

Thinking of Buying or Selling Property in Clearwater Beach Florida – We can help

If you have been thinking about buying or selling a waterfront or beach condo in the Clearwater St Pete Tampa Bay 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 condos 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 Beach Florida and may not be copied, reproduced, distributed, transmitted, displayed or published.

Facebooktwittergoogle_plusredditpinterestlinkedinmail
View All Clearwater Beach Florida Posts

7 Comments

  1. Cyndee – Fantastic and informative post. Even today, we’ve got unbelievable low rates and everything’s on sale! Those that buy now realize that these are the times when fortunes are made, regardless of a few tenths of a percentage point!

  2. Lots of my military friends look to retire around Clearwater and nearby Tampa and St. Pete. With the depressed prices there are a ton of properties on the Gulf Coast that are attractive and not moving. If you have the time to shop and then wait you can really wait till rates drop and swoop in.

  3. No one can imagine that they could make a stay at Florida beach which has crystal clear water….it trills every one with surprise seeing the cost.

  4. I think the prices there are too high so i prefer not to go there. I know even paying more is worth but as you know that recession is on and i can’t afford to spend more.

Leave a Reply

Your email address will not be published.