Due to the Thanksgiving Holiday, Freddie Mac released its weekly survey a day early. Yesterday 11/26/08, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.97% (5.95% in the southeast), down from 6.04% a week ago. This is the lowest it has been since October 5th of this year. The average interest rate for 15 year fixed-rate mortgages was 5.74%, up slightly from 5.73% last week. A year ago the 30 year rate was 6.10%.
World-wide interest rates have dropped based on the perception, or reality, that the overall economy is slowing. Interest rates in the USA followed this trend. Apparent economic growth in the third quarter has been revised downward. We had the first decline in consumer spending since 1991!
However, lower interest rates and falling home prices have made getting a home more affordable for many people. That is a plus. And as I mentioned last week, here in Zephyrhills our winter residents are arriving and buying homes. The retiree markets seems to be less drastically affected by the economy or they may believe that with large companies folding and leaving them with worthless paper, owning a second home is a more stable investment. At least it will never become entirely worthless like stocks or bonds can. In any case, I just sold another one this weekend, and that makes three in three weeks. So there is interest there, at least in the Zephyrhills area. Hopefully it will continue on into January, February and March which are usually our most active months in the retiree/senior market.
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