Yesterday 4/9/09 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.87% (5.18% in the southeast), up from 4.78% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.54%, up from 4.52% last week. A year ago the 30 year rate was 5.88%. All things considered, these rates are still VERY VERY low, historically speaking.
Freddie Mac spokespersons said that homeowner affordability was still at record levels and perhaps this will get even more people to make purchases. However, both prices and interest rates have been low for weeks, and yet some people still sit on the fence. A large reason for this could be the uncertainty that is setting over the country at the moment. Even if it does not affect us and is not rational to be fearful, hearing that a giant like GM is in trouble can make anyone a bit uneasy.
But reports say that housing demand has strengthened. Convention mortgages for new purchases and for refinancing of old loans have both increased during the past 5 weeks. Since February, applications for home purchases were up 22% and nearly 129% for refinancing. Looks like at least some people want to take advantage of the very low rates. They can save a lot of money short-term and long-term by doing so.
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