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:
- Clearwater FHA loans tighten and it’s a new day after April 1st
- How Clearwater Beach Jumbo Loans are hurting buyers and sellers right now
- Tampa Condo loans effected by new Fannie Mae Guidelines changed for Florida
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:
- After the Fed’s “surprise” rate cut in January 2008
- After the Fannie Mae and Freddie Mac takeovers in September 2008
- After the Fed announced its first $500 in support in November 2008
- 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.
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