Today, 12/30/10, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.86% (4.82% in the southeast), up from 4.81% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.20%, up from 4.15% last week. A year ago the 30 year rate was 5.14%.
Seems like an "old song" but Freddie Mac reports that there is again mixed news on the housing front. Though a home price index fell nearly 1%, indicating a soft real estate market, the the number of homes sold continued to recover even after the tax credit expired last spring. Sales of new homes were up 5.5% in November and the sales of existing homes followed suit with a 5.6% gain.
So don't get out the fireworks yet. It took a while get to the bottom of the curve in the real estate market and we are not going to climb out in just a couple of months. It will take time. But little-by-little we are seeing improvements on several fronts as markets improve around the country. And obviously, some areas of the US will recover faster than others. But at least we are moving in the right direction as we enter 2011. Let's hope the momentum continues.
As I have mentioned previously, here in Zephyrhills, our winter visitors are returning, and that means more sales in this area. We are seeing more floor traffic in our offices, more visitors to my websites, and an increase in the volume of phone calls/e-mails. Though it is winter here, things are heating up! This especially true now that the holidays are pretty much over, and the final huge group of "snowbirds" blow into town. We welcome them with open arms!
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