Today, 10/28/10, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.26% (4.24% in the southeast), up from 4.21% a week ago. The average interest rate for 15 year fixed-rate mortgages was 3.66%,up from 3.64% last week. A year ago the 30 year rate was 5.03%.
For two weeks in a row, interest rates have edged upward. Did we reach the bottom a couple of weeks ago or is this just a tiny blip on the financial radar screen? Pays to keep your eyes on how this trend continues or changes course.
Again, it was the mixed bag of economic news that kept interest rates from rising more. Consumer confidence was up a bit, but housing prices fell again in many areas. However, the "purchase only index" moved a bit higher.
A Freddie Mac spokesperson said, "Historically low rates are supporting home sales and reducing the excess stock of homes available for sale. Existing home sales, including condominiums and co-ops, rose for the second consecutive month in September, up almost 18.0 percent over July’s low. Similarly, sales of new homes had back-to-back increases and were 7.7 percent above July. The inventory of new homes for sale has either stayed the same or declined every month of this year."
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. Also, your own credit history, the property you want to buy, etc. will effect your specific loan options and interest rates. Your mortgage broker or bank loan officer can give you more specific information.
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