Today, 2/24/11, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.95% (4.92% in the southeast), down from 5.00% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.22%, down from 4.27% last week. A year ago the 30 year rate was 5.05%. Nice to see them below the 5% mark once again. How long they will stay there is anyone's guess.
There was mixed data concerning inflation and Freddie Mac said that was a cause of the slightly lower interest rates this week. Even though house prices fell 4.1% in the 4th quarter of 2010 (compared to a year earlier) the consumer price index for January rose a bit. One up, one down. Mixed news indeed.
In a recent post I reported that the National Association of REALTORS (NAR) had reported the sales of existing homes in the US had risen for the 3rd straight month in January 2011. And the pace of sales was the strongest in the past 8 months. Only in the Northeast was there some lagging. Wonder if the bad weather contributed to that?
Here in Zephyrhills, the pace is getting almost too busy. Lots of buyers. Not only for winter vacation homes, but also people snapping up bargains from the foreclosure markets and also conventional (non-distressed) sales. Good news for local buyers, sellers, and their agents. We all hope the accelerated rates of sales continues. At least in our little part of the United States!
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