Today 8/9/07, Freddie Mac reported that the average mortgage interest rates for 30 and 15 year loans were considerably lower. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.59% (6.55% in the southeast), a drop from 6.68% a week ago. The average interest rate for 15 year fixed-rate mortgages was 6.25%, down from 6.32% last week.
New job creation did not meet expectations with only 92,000 jobs being added in the month of July. This was the smallest jobs gain since the February 2007. In addition, the unemployment rate increased to 4.6%. The first increase since March 2007. These two factors worked together to drop the average mortgage rates around the United States.
Though rates did fall for prime conforming fixed-rate mortgages, it is being reported that the rates actually rose for "jumbo fixed-rate loans" by 0.25% or more last week.
Freddie Mac is reporting that due to tightened lending standards and slowing home value appreciation, fewer homeowners are going the refinancing route.
Also today (8/9/07) it was reported that the Dow Jones Industrials dropped 387 points. This was a result of news that a French bank and others were no longer going to invest in subprime mortgages here in the US. As you may have heard, these subprime loans are a major cause of the housing market's problems since most of the homeowner defaults are in this sector of the lending market. It will be interesting to see how this cut-off of funds will affect mortgage rates in the weeks to come.
Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.
If you want to learn more about Freddie Mac or see the details of their survey, go to: www.freddiemac.com and click on the link for "Current Weekly Survey". They break down the survey by specific regions in the United States so you can see how your state compares to other parts of the country. They also explain the mission of Freddie Mac and offer a lot of useful information for consumers.
If you would like to speak with a lender you can find some at my website: www.jelwell.century21bnr.com . You can also speak with your own bank, credit union, or mortgage broker to see what your particular interest rate would be should you decide to finance a home purchase.
John Elwell - REALTOR
Bill Nye Realty, Inc.
Licensed in Florida