Yesterday Freddie Mac reported that nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.53% (6.52% in the southeast), up from 6.42% a week ago. The average interest rate for 15 year fixed-rate mortgages was 6.22%, up from 6.12% over last week. A year ago the 30 year average was 6.62% and the 15 year was 6.23.
Wage growth and a tight labor force helped to drive interest rates higher this week. May's unemployment rates were at the second lowest level since May 2001 and hourly earnings rose. Labor costs increased 1.8 during the first 3 months of 2007, triple the estimated increase, and this in turn has raised concerns regarding inflation.
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.
John Elwell - REALTOR
Bill Nye Realty, Inc.
Licensed in Florida