Fort Lauderdale Interest Rates at a 2011 Low

Every Thursday Freddie Mac releases their Primary Mortgage Market Survey which shows average interest rate for the week ending.  If you dig into and read the actual report you will see that it is always with paying points and broken down by regions.  With anything you read you need to make sure to read the whole article, not just the headline.

By only reading the headline and not understanding the report you could get yourself in trouble.  Remember, this news is something that has already happened.  Yesterday mortgage-backed securities, which is what moves interest rates, rallied like crazy for the better.  Right now, mortgage bonds are down 47 basis points which in english means whatever rate you got at the end of the day yesterday now will cost you your loan amount times .0047 so on a $100,000 mortgage that is $470 extra.   The reason not knowing much about this survey can hurt you is if you quote it and on Thursday mortgage bonds get a lot better you might get the savings passed on to you.  Yes , there are dishonest people.  I don’t mean to be negative but this is why it is important to know what you are quoting. 

You will see for Fort Lauderdale and the Southeast that the rates ended a tad higher than the rest of the US at 4.57% versus 4.55% paying .6% in points.