Yesterday 5/7/09 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.84% (4.77% in the southeast), up from 4.78% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.51%, up from 4.48% last week. A year ago the 30 year rate was 6.05%. These rates are still VERY VERY low, historically speaking.
The slight rise was caused by positive economic reports, said Freddie Mac. Many are starting to say that we may have bottomed out for this recession. For home buyers the consumer sentiment figures were revised to come out above what the market consensus had forecast.
Federal Reserve Chairman Bernanke said he expects the recession to hit its lowest point soon and for things to take an upturn later this year. He said that he feels the housing market is now stabilizing and that pending home sales rose for the second consecutive month in March. The last time that happened was in March of 2008. Also, the Fed reported that demand for prime mortgages rose for the first time since April 2007.
If you listen to the nightly news, it does seem like there are more and more positive stories about the economy, and more specifically, the housing sector. After months and years of nothing but negative stories, any ray of sunshine is welcome! Part of our malaise is due to our mental perceptions of the state of the economy. Once we start to believe things will get better, then our actions will likely take a different direction that will help make that better future a reality.
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