Today, 5/30/2013 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgage was 3.81% up from 3.59% last week. The average interest rate for 15 year fixed-rate mortgages was 2.98%, up from 2.77% last week. A year ago the 30 year rate was 3.75%.
This is the 4th week of increases so it very well could be that instead of seeing steady decreases week-after-week, we will now see increases. And this week's increase was not so "slight". Many economists are saying that average mortgage interest rates will be close to 4% by year's end. That may not seem like a lot. However, when you figure it into a 30 year mortgage, it makes a big difference in the amount of interest you will have to pay over the life of the loan. Something to think about if you are on the fence. Also be aware that inventories remain low. In fact recent reports said that the inventory of foreclosed properties was down more than 20% in April of 2013. When inventories drop, prices tend to rise.
Freddie Mac's Vice President said, "Fixed mortgage rates followed long-term government bond yields higher following a growing market sentiment that the Federal Reserve may lessen its accommodative policy stance. Improving economic data may have encouraged those views. For instance, the Conference Board reported that confidence among consumers rose in May to its highest level since February 2008. Meanwhile, the Case-Shiller®20-city composite index for March rose to its highest reading since November 2008 (seasonally adjusted). All 20 cities had positive monthly gains, led by a 3.2 percent increase in Las Vegas."
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 local lender you can find several at my website: www.jelwell.century21bnr.com
You can also contact 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: firstname.lastname@example.org You are also welcome at my webpage: www.jelwell.century21bnr.com Licensed in Florida.
John Elwell - REALTOR
Bill Nye Realty, Inc.
Licensed in Florida