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Current Mortgage Rates Today in Volusia County, Florida

One of the essential things to note in the mortgage market is that mortgage rates took a dramatic turn throughout the previous pandemic. The rates dipped significantly as the health crisis was in its early phase. But, later on, while the economy recovered, it returned to the pre-pandemic levels and kept increasing.

So, what's the reason behind these drastic movements, and what drives them? While the answers to these questions seem complex, these dynamics may make sense once you learn the driving factors behind mortgage rates.

Mortgage interest rates significantly affect the overall cost of a home using a loan. As a borrower, you'd want the lowest possible rates on your mortgage. However, lenders must manage their risk of originating loans through mortgage rates.

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In this guide, you'll learn how the prime interest rates for a mortgage are determined. You'll also discover ways to get the lowest possible rate from a trustworthy lender in Volusia County, Florida.

Are you a first-time homebuyer? Learn more about the available FHA home loan options in Volusia County, Florida.

Driving Factors for Mortgage Rates

Several factors play a role in how mortgage interest rates are determined today. Some of these factors are under your control, while some aren't. Here is a breakdown of personal and market factors driving mortgage rates.

Personal Factors

Personal factors such as credit score, down payment amount, loan-to-value ratio, and occupancy can affect the interest rate your lender gives you before factoring in the origination fees. Since you can control these factors, you may indirectly influence the interest rate lenders to give you on a mortgage.

Down Payment

The down payment amount is one of the instruments lenders use to gauge your commitment to taking a home loan. Putting down a lot of money on a property will suggest that you are less likely to skip the mortgage payments.

On the other hand, a low down payment will make you a high-risk borrower and get you high mortgage rates.

Credit Score

Mortgage lenders also use credit scores to determine your risk as a borrower. A good credit score indicates that you usually make on-time bill payments without overstretching your credit.

But a low credit score suggests the opposite and can lower your chances of getting a favorable interest on a home loan.

Loan-To-Value Ratio

To secure a competitive mortgage rate, you need a high loan-to-value ratio. The loan-to-value ratio is used to compare the down payment amount made to the total loan amount.

A higher LTV means that you put less money on the home, while a lower LTV implies that you made a good down payment.


Most home loans favor borrowers who intend to live in the home they are financing with the loan. It can be quite daunting to secure a good interest rate on a mortgage meant to finance a vacation home or investment property. In this case, loans to finance primary residences attract the lowest mortgage rates.

Market Factors

Market factors, including the economy's health, inflation, and the bond market, play a significant role in determining mortgage rates. As discussed below, others include the Constant Maturity Treasury, Secured Overnight Finance Rate, and the Federal Reserve.

The Federal Reserve

The Federal Reserve influences mortgage interest rates by controlling the short-term interest rates. It increases or decreases them depending on the prevailing state of the economy. Expect the rates to change when the Federal Reserve rates change.

Since the Fed uses short-term interest rates to regulate the money supply in the economy, they lower the rates when the economy is in a crisis. However, only banks that lend money to consumers get these rates.

And if the Fed decides to tighten up money flow, they increase the Fed rate, prompting lenders to do the same on interest rates to keep up with the costs of borrowing money from the Federal Reserve.

The Bond Market

Though mortgage interest rates have a long history of being associated with the 10-year US Treasury note, they have ties with the bond market. This is the market where bundles of mortgages such as mortgage bonds and mortgage-backed securities are sold.

Since bonds affect mortgage interest rates based on demand, high demand for bonds (basically when the stock market is underperforming) translates to a spike in mortgage rates and vice versa.

The Constant Maturity Treasury (CMT) Rates

CMT rates are computed yields derived from the average yields of US Treasury securities set to mature at varying times and used to adjust for multiple periods.

Some mortgage lenders rely on these rates to set interest rates on adjustable-rate mortgages. All mortgages tied to CMT rates will have higher rates once they go up.

The Secured Overnight Finance Rate

The Secured Overnight Finance rate is directly related to the overnight borrowing costs banks incur. Mortgage lenders rely on this rate to set base interest rates for their mortgage programs. It's increasingly serving as a replacement for the London Interbank Offer Rate, which is no longer used as of 2021.


Inflation refers to the general increase in the price of commodities in the economy. It usually corresponds to the purchasing power of money.

A spike in inflation results in an increase in the prime interest rates on home loans. Mortgages respond to inflation hikes to keep up with the dollar value.

The Health Of The Economy

The current state and outlook of the economy also determine mortgage rates. If the economy performs well, mortgage rates increase since more people can afford to take a home loan. Consequently, an underperforming economy will drive mortgage rates down.

Why are Mortgage Interest Rates Where They Currently Are?

It's now clear that certain personal and market factors make mortgage rates rise and fall. But it is unclear why mortgage rates are where they currently are. To answer this question, you must understand the sources of mortgage money.

Mortgage money is derived from sources such as banks as well as brokerages. Through capital markets, investors also act as a source of these funds. In this case, they purchase bonds, debt instruments that govern mortgage money.

Bond sellers must be tactical to attract investors and get the most out of their offerings. This is why they offer various debt instruments, each with varying risk and return structures over a given period.

These instruments are introduced to the bond market to compete with other investments such as foreign bonds, US Treasuries, and corporate bonds, which are relatively similar in performance.

Who are These Investors, and What's Their Angle?

Like in any other market, investors expect lucrative returns on their investments. And since they have options when investing their cash, bond sellers have to price their debt instruments competitively to attract them. Specifically, the sellers increase interest rates on debt instruments such as mortgages to make them attractive to investors.

But increasing interest rates isn't a viable solution since the mortgage market also attends to borrowers who expect the lowest possible rates. Bond sellers, therefore, have to strike a balance between pleasing investors and ensuring that the borrowers don't suffer in the long run.

Wooden home and cube block shape with icon percent on wood scales

Getting a Competitive Rate on a Home Loan in Volusia County, Florida

Most steps to get you the lowest possible rates happen before applying. The critical factors for a competitive rate are a sizable down payment and a stellar credit score.

Never trust a lender, mortgage broker, or realtor to get the best mortgage terms. While they may offer you financial incentives to improve your borrowing profile, it's essential to shop around, calculate different rates and compare them.

Use the following tips as your guide as you shop around for a reasonable rate on a home loan.

Improve Your Credit Score

Getting your finances in order can be challenging if you plan to buy a home right now. Try to improve your credit score by settling any outstanding balances or debts you may have. You should start the home buying process when your finances are in order.

Did you know that even a 20-point credit score difference can lower or increase your mortgage rate to more than 0.25 percent? This may result in a higher or lower interest paid throughout the mortgage.

Save for a Sizeable Down Payment

The more significant the down payment amount, the lower the loan payments and interest paid over time. In this case, a higher down payment (of 20 percent or more) can help lower the prime interest rate on a mortgage.

Gather Your Income Information and Employment History

Mortgage lenders generally expect at least two consecutive years of employment and steady income. This allows them to determine whether you can afford the monthly loan payments and pay back the loan within the stipulated time frame.

The lender will ask you for federal tax returns and W2 forms for the last two years for income verification if you are a salaried employee. They will also confirm with your employer your employment history. Any gaps in your employment history or earnings may make lenders skeptical about approving you for a home loan.

If you are a self-employed borrower, expect to get relatively higher mortgage rates than what is advertised. Lenders will also subject you to stricter rules when confirming your income.

You'll also have to submit documentation, including profit/loss sheets, a signed statement from an accredited accountant, and two-year federal tax returns to prove sufficient self-employment income.

Know Your Debt-to-income Ratio

Mortgage lenders are more concerned about the amount of debt on your profile against your gross monthly earnings. They usually calculate your DTI by looking at your income and employment history. The DTI ratio helps determine a base interest rate for your mortgage.

DTI is calculated using two formulas: the back-end and front-end ratios. The front-end ratio summarizes all monthly housing costs (HOA fees, property taxes, homeowners insurance, and mortgage payments) before dividing them by your gross monthly earnings.

On the other hand, the back-end ratio is the cumulative revolving debts (including students, car loans, and credit cards) and the proposed loan payments divided by the sum of your total monthly income.

Use a Mortgage Calculator

A mortgage calculator can give you a rough picture of your monthly payments, depending on the inputs. The calculator also allows you to work out different scenarios with the mortgage payments you can afford and the interest costs. You can use it to determine whether a 15-year or a 30-year mortgage would suit your situation.

Consider Total Loan Closing Costs

Since closing costs contribute 2 to 5 percent of the home's price, you need to consider them when settling for a home loan. Get a loan estimate sheet from different lenders to understand these costs. The estimate should summarize all fees the lender expects you to pay during closing.

Compare the interest rate to the closing costs on the mortgage before sending your application to the lender. The goal here is to secure a better mortgage rate that will reduce the overall interest paid over the loan's life and lower the closing costs' burden.

Consider Mortgage Insurance

You may opt for private mortgage insurance if your down payment is below 20 percent. This is because lenders consider borrowers with a low down payment high risk. Mortgage insurance helps lower the lending risk, allowing them to give you a loan.

The mortgage insurance premiums will add thousands of dollars to your total loan costs. Expect to pay between 0.5 percent and 1 percent as mortgage insurance depending on the lender throughout the loan.

5 Great Activities for Children in Volusia County, Florida

With over 47 miles of beaches bordering the Atlantic Ocean, Volusia County is a county situated in the east-central part of Florida. It features plenty of children and family-friendly recreational opportunities, as discussed below.

See All Kinds of Reptiles at the Reptile Discovery Center

The Reptile Discovery Center features an outdoor nature trail where your family can glimpse different reptile species, including tortoises, alligators, and lizards, basking or being active in their natural enclosures.

The facility's indoor exhibits also accommodate snakes such as mambas, cobras, and rattlesnakes collected from different parts of the world.

Learn About the Environment at Marine Science Center

The Marine Science Center is a great place to take your kids to learn about the rich environment surrounding Volusia County, Florida, and ways to conserve it. The center also runs a turtle rehabilitation program open to adults and children.

Interactive Displays on Energy Conservation at Lyonia Environmental Center

A visit to Lyonia Environmental Center will offer your children unique insights into the fragile ecosystems of Volusia County, Florida. Through interactive displays and guided learning sessions, your kids discover the importance of energy conservation.

Take the SunRail Train for an Exciting Ride

If you and your family are in for an exciting adventure, you can consider taking the SunRail train from the departure station at DeBary to Winter Park. Besides being clean and comfortable, the train has plenty of amenities that any traveler would want to use.

The train ride is a perfect way to explore some of the picturesque places Volusia County offers. You can get the tickets at a reasonable price for you and your kids.

Paddle Boarding and Kayaking at New Smyrna Beach

Take your enthusiasm for paddle boarding to New Smyrna Beach, where you'll find paddle board and kayak rentals, lessons, and guided tours.

You may explore the waters using single or double kayaks, each with secure and direct waterfront access. The watersports activities are only suitable for ages 6 to 85 and are geared towards memorable experiences.

The Bottom Line

All in all, many personal and market factors strongly affect the interest rates lenders set for mortgages. This, in turn, influences the cost of the monthly payments throughout the loan.

While some factors are beyond your control, you still have those factors you can control to secure a better rate. Consider improving your credit score and debt-to-income ratio before you apply for a home loan—all the best as you secure a favorable interest rate on a mortgage in Volusia County, Florida.

With over 50 years of mortgage industry experience, we are here to help you achieve the American dream of owning a home. We strive to provide the best education before, during, and after you buy a home. Our advice is based on experience with Phil Ganz and Team closing over One billion dollars and helping countless families.

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