Today, 1/27/11, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.80% (4.76% in the southeast), up from 4.74% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.09%, up from 4.05% last week. A year ago the 30 year rate was 4.98%.
Freddie Mac's spokesperson said today, "Mortgage rates followed bond yields a little higher this week amid positive data reports from The Conference Board that suggest the economy is strengthening. The index of leading indicators rose 1.0 percent in December, nearly twice that of the market consensus forecast and represented the sixth consecutive monthly increase, according to the Board. They also reported a stronger gain in consumer confidence for January, rising to an eight-month high. In addition, the share of households who said jobs were plentiful rose to the highest level since May 2009."
The housing market also showed signs of bouncing back. Existing home sales in December 2010 rose at the fastest rate since May of last year. The sale of new homes also leaped to the highest level in the past 9 months. Now, instead of sellers having to wait 9.5 months, on average, before finally selling their homes, they wait 8.1 months. For new homes the waiting time dropped from about 8.4 months to 6.9 months. Not an insignificant difference! Let's hope the time decreases even more as we proceed through 2011.
Activity is in high gear here in Zephyrhills, Florida. I almost wish it would slow a bit since this has been one hectic week! Lots of buyers out there looking, especially in our retirement subdivisions. But even in the "real world" there is a lot more looking, shopping and buying of homes going on. Hooray!!!
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