Today 8/7/08 Freddie Mac reported that the average mortgage interest rates for 30 and 15 year fixed-rate loans were virtually unchanged from last week. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.52% (6.49% in the southeast), unchanged from a week ago. The average interest rate for 15 year fixed-rate mortgages was 6.10%, up from 6.07% last week. A year ago the 30 year rate was 6.59%.
I am thinking that the Federal Reserve's decision this week to not play with the rates they charge banks had something to do with this, at least momentary freeze, in mortgage rates. Guess the recent drops in the price of crude oil has perhaps eased their inflationary fears.
Housing inventory remains high and is putting pressure on builders and resellers. Of course, their bad news is good news for buyers who can not buy new homes for well under $100 per square foot. One of my long-time customers just bought a 4 bedroom, 2 bath, 2 car garage, 2000 square feet+, home with many upgrades for $80/square foot! Now that is a very unusual situation, but there are a lot of others out there in the Zephyrhills area of Florida and the rest of the state that are nearly as good. If you have cash and/or good credit you can make some wonderful deals. So it may be worth seeing what is available out there. There are no guarantees in real estate, but with prices at these levels, it is hard to believe that a purchase now will not seem like a good investment in a couple of years when the current market slump is history. Worth considering at least.
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