Today 5/21/09 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.82% (4.79% in the southeast), down from 4.86% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.50%, up from 4.52% last week. Lately they have been hovering right around the same spot with little, if any, change at all. A year ago the 30 year rate was 5.98%.
The reason rates have remained low is due to the purchases of securites by the Federal Reserve. According to Freddie Mac's vice-president "The Treasury purchased $136 billion in mortgage-backed securities through April, and the Fed bought $740 billion through mid-May. In addition, the Fed purchased $115 billion in Treasury bonds since March of this year."
Overall, housing starts were still down. But as you can see in my previous posts, the National Association of Home Builders (NAHB) reported that starts of single-family homes was actually up. In my mind, single-family homes are the "bread and butter" of housing. So any increase in that sector is good news. Builder confidence was all up!
Inventory levels here in Zephyrhills, Florida are still low and we are looking for more sellers. When the flooding of the market with homes for sale slows, then prices will continue to stabilize at even a greater rate than we are seeing now. Hopefully the summer will see even further improvements.
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