John's Florida Real Estate Blog

head_left_image

Freddie Mac: Interest Rates Rise! Did You Get Caught?

Today 4/24/08 Freddie Mac reported that after several weeks of no upward movement of mortgage interest rates and with the average rate well under 6%, average mortgage interest rates for 30 and 15 year fixed-rate loans have moved upward once again. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.03% (6.00% in the southeast), up from 5.88% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.62%, up from 5.40% last week. A year ago the 30 year rate was 6.16%.

How many of you were waiting to see if the rates had bottomed out? As many stock investors find out, knowing exactly when a market has bottomed out is a difficult thing to do. Sometimes you have to take a low market that looks good and make your move. Otherwise you risk having the market do an about-face on you and start back in the wrong direction. Some buyers are doing the same thing with house prices. They are betting that the home prices will drop further. Even though they are now often less than $100/square foot, a price that was common before the last hot market began, buyers wait on and on hoping they will go even lower. At some point, the prices will start back up again, and they will wish they had moved. Catching the market when it is at its absolute lowest is nearly impossible. Close to lowest is often good enough. In my area we are seeing inventories slowly drop and demand picking up a bit. At some point prices will follow interest rates and begin to climb again. If both interest and prices rise, that will truly be a double whammy.

The latest rise in interest rates is due to inflation fears. The Producer Price Index rose 1.1% in March. That was double what the experts had predicted.

It was also revealed that it now appears less likely that the Federal Reserve will drop interest rates substantially at its next meeting. Some of you that are waiting may want to speak with you lender or mortgage broker and find out what a half percentage point increase will cost you each month and over the life of your loan. You may be surprised.

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

CENTURY 21

Bill Nye Realty, Inc.

813-783-4444

Licensed in Florida

 

Comment balloon 0 commentsJohn Elwell • April 24 2008 06:20PM
Freddie Mac: Interest Rates Rise! Did You Get Caught?
share
Today 4/24/08 Freddie Mac reported that after several weeks of no upward movement of mortgage interest rates and with the average rate well under 6%, average mortgage interest rates for 30 and 15 year fixed-rate loans have moved upward once again… more
Finding Cheap Gas in Zephyrhills, Florida and Around the United States
share
This is a little off the topic of this blog, but as a real estate agent I put a lot of miles on my car and a lot of gas in its tank. Many people who are house hunting do the same. If you would like to find where the cheapest gas is in your area, you… more
Little or No Movement in Interest Rates This Week: Freddie Mac
share
Today 4/17/08 Freddie Mac again reported that the average mortgage interest rates for 30 year fixed-rate loans have not changed a bit since last week's report and the rates for 15 year fixed-rate loans dropped just slightly. Nationally the average… more
Freddie Mac: Average Mortgage Interest Rates Unchanged This Week
share
Today 4/10/08 Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans have not changed a bit since last week's report. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 5. 88%… more
Mortgage Fraud Up 42%, But More Fraud Is Caught Prior To The End of…
share
The Financial Crimes Enforcement Network last week released a report that indicates that suspicious activity has been on the rise nationwide. There was a 44% increase in 2006. In 2006, there were 37, 313 mortgage fraud SARs filed. The final total for… more
Average Mortgage Interest Rates Creep Upward Says Freddie Mac
share
Today 4/3/08 Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans have begun to move upward once again. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 5. 88% (5. 86% in… more
Flooring That Perhaps You Should Be Wary Of
share
This is my personal opinion about a newer type flooring that is beginning to show up around here. Yesterday was the day of the week when all of the area agents go on "tour" to see the new listings that have come on the market. Lately there… more
Showing Your Own Home? - That Could Be a Dangerous Proposition!
share
A while ago I posted some questions that you should ask any potential listing agents you were considering employing. An event yesterday highlited something that I mentioned in that post and I felt it was worth repeating here. It deals with your… more
My April 2008 Real Estate Newsletter Is Now Available For Download
share
My April 2008 Real Estate Newsletter is now available for download as a PDF (Adobe Acrobat) file. Just click on the following link: Download April2008Newsletter. PDF If you would like to receive these newsletters automatically in the… more