John's Florida Real Estate Blog

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Mortage Interest Rates Decrease after a Month of Increases

Down Arrow - JTEToday, 8/30/2012, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 3.59%, down from last week when it was 3.66%. The average interest rate for 15 year fixed-rate mortgages was 2.86%, down from 2.89% last week. A year ago the 30 year rate was 4.22%. 

Finally after several weeks of gradual increases, interest rates headed south for Labor Day. Well below the 4% mark and that means savings for years for those of you who can take advantage of them and purchase a home now. Over the long haul you would be amazed at the tens of thousands of dollars you will save in interest. Not to mention how the rates will lower each monthly mortgage payment!

Freddie Mac's spokesperson said that the following events caused the rise in interest rates:

  • "Treasury bond yields fell, allowing mortgage rates to follow, after the release of the July 31st and August 1st minutes of the Federal Reserve's monetary policy committee. Committee members agreed that economic activity had decelerated more in recent months than they had anticipated at their last meeting in June. Some members even saw room for additional stimulus fairly soon if needed.
  • "Nonetheless, the housing market continued to show improvement over the past few months. New home sales rose 3.6 percent in July matching May's pace as the strongest month since April 2010.  Similarly, pending existing home sales also rose in July to its highest rate since April 2010. And, the S&P/Case-Shiller National Home Price Index rose 1.2 percent between the second quarter of 2011 and 2012, reflecting the first annual increase since the second quarter of 2010."

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.

I would also be happy to assist you in any way that I can. Just call JOHN ELWELL - REALTOR at CENTURY 21 Bill Nye Realty, Inc. : 813-783-4444 or e-mail me at: jelwell1@tampabay.rr.com You are also welcome at my webpage: www.jelwell.century21bnr.com  Licensed in Florida.

John Elwell - REALTOR

CENTURY 21

Bill Nye Realty, Inc.

813-783-4444

Licensed in Florida

 

Comment balloon 0 commentsJohn Elwell • August 30 2012 04:52PM
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