Today 2/07/08, Freddie Mac reported that the average mortgage interest rates for 30 year and 15 year fixed-rate are nearly unchanged from a week ago! Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 5.67% (5.62% in the southeast), down from 5.68% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.15%. down from 5.17% last week. Very little movement indeed. A year ago the former was sitting at 6.28% and the latter at 6.02%
Freddie Mac says that the stability this week closely mirrored what was happening in the Treasury bond markets. In addition, recent news on the economy shows that it continues to less than robust at this time.
Non-farm payroll jobs fell by 17,000 positions in December and that was the first drop since August of 2003.
Also, a survey done by the Federal Reserve showed that lenders were continuing to tighten their standards for borrowers. Do you think perhaps they learned a lesson from all of those sub-prime loans they were touting not so long ago?? 53% of the lenders surveyed said they were continuing to tighten their standards, up from 41% in October of 2007. 70% feel that credit quality for prime residential mortgages will continue to fall during the current year.
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