John's Florida Real Estate Blog

head_left_image

Freddie Mac: Average Mortgage Interest Rates Basically Unchanged This Week

Today 6/25/09 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.42% (5.36% in the southeast), up from 5.38% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.87%, actually down from 4.89% last week. A year ago the 30 year rate was 6.45%. One rate went up and one went down. Mostly a wash I would say. Changes that will matter little on your loans.

Interest rates remained relatively unchanged due to very conflicting economic reports concerning the housing market. The sales of existing homes went up for the second straight month, but the median price for them was nearly 17% lower than it was last year. This according to the National Association of REALTORs (NAR). While the sales of existing homes rose, sales of new homes fell 0.6% in May. But their median price was only 3.4% lower than last year. In my opinion, the builders were discounting more aggressively and started doing it way before the average home seller did. That could explain the difference in the median price drops.

Some good news is that the inventory of unsold homes has gone down. Don't you remember me telling you that on several occasions? Here in Zephyrhills, instead of having 30 new listings come on the market each day, now we only have 3 or 4. And with the builders sitting things out for the most part, it only figures that inventory will drop. According to Freddie Mac, the number of existing homes waiting to be sold is 15.3% lower than it was a year ago. And the number of new homes in the inventory was down 35.9%!

Now one more good note. The number of distressed (short sales, foreclosures, abandoned homes) up for sale no only consitute 1/3 of the market as opposed to nearly half of it as recently as March 2009!. That is very good news for the rest of you selling who want to sell your homes and this could help to stablize the prices in the future. Will be nice not to have to compete with 10 foreclosures in your neighborhood.

But do watch those interest rates and do not try to guess when it will be the lowest it can go. No one can predict that. When the rates are "pretty good" and are acceptable to you and your budget, that may be the time to make a move. If you wait to long as you try to anticipate whether rates will go even lower, you are likely "to get caught with your pants down and interest rates up".Trying to avoid that could be what is making some buyers finally get off the fence based on recent interest rates increases.

Do keep in mind that we are a very large country. So figures that come out for the entire nation, may have little or no relevance for your particular area. In the end, it is best if you speak with a local REALTOR or financing expert to see what the situation is for your part of the United States. Florida is not Michigan, nor is Maine the same as California. Market conditions can be very different from place-to-place.

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.

I would also be happy to assist you in any way that I can. Just call me at: 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com  You are also welcome at my webpage:  www.jelwell.century21bnr.com

John Elwell - REALTOR

CENTURY 21

Bill Nye Realty, Inc.

813-783-4444

Licensed in Florida

 

Comment balloon 0 commentsJohn Elwell • June 25 2009 02:42PM
Freddie Mac: Average Mortgage Interest Rates Basically Unchanged This…
share
Today 6/25/09 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5. 42% (5. 36% in the southeast), up from 5. 38% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4. 87%, actually… more
Zephyrhills Saturday Nite Cruise for Classic Cars - July 25th in…
share
Main Street Zephyrhills, Inc. is offering another Zephyrhills Saturday Nite Cruise on July 25th from 4 PM to 8 PM. It will take place near the intersection of US 301 and State Road 54 (5th Avenue). There will be: &… more
An Example of Why Home Buyers Need the Services of a REALTOR
share
I was recently asked to list a mobile home in one of our nearby retirement subdivisions here in Zephyrhills, Florida. (Not the one in the image here) The home had been purchased for about $38, 000 a few years ago directly from a seller with no real… more
After Several Weeks of Rising Mortgage Interest Rates, They Drop a…
share
Today 6/18/09 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5. 38% (5. 37% in the southeast), down from 5. 59% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4. 89%, down… more
4th of July Sparklebration to Take Place at County Fairgrounds in…
share
On Saturday, July 4, 2009 the Annual Sparklebration will take place in Dade City, Florida at the Pasco County Fairgrounds located at 36722 State Road 52. This is just to the west of the city center. Gates will open at 4 PM and the fireworks display… more
Home Buyers Must Understand Their Credit Situations & How to…
share
Today we are in a bit of a mess economically here in the United States, as are many other countries. Zephyrhills, Florida is no exception. Part of the problem is a clogged-up credit system. Money is not flowing as freely as it used to. In past… more
Mortgage Interest Rates Now at 7 Month High says Freddie Mac
share
Today 6/11/09 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5. 59% (5. 53% in the southeast), up from 5. 29% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5. 06%, up from 4… more
Blood Drive at CENTURY 21 Bill Nye Realty in Zephyrhills, Florida
share
Please be aware that the Bloodnet USA bus will be parked outside of our offices on Monday, June 29, 2009 (my birthday). It will be there from 10:00 AM to 12:30 PM. Many of our agents and other employees will be making donations, and we invite the… more
8 Things You Should NOT Do When You Set A Price On Your Home
share
Every week I am called upon to do a Comparative Market Analysis (CMA) so a seller can see what the most reasonable price their home can command at that point in time. I do these CMAs by pulling data from the Multiple Listing System records and the… more
Mortgage Interest Rates Back Above 5% Again says Freddie Mac
share
Today 6/4/09 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5. 29% (5. 27% in the southeast), up from 4. 91% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4. 79%, up from 4… more