Today 5/28/09 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.91% (4.88% in the southeast), up from 4.82% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.53%, up from 4.50% last week. A year ago the 30 year rate was 6.08%. The change this week was larger than recent variations and is getting near the 5% level. Still historically low, but prefer to see it stay the same or go lower.
Long-term bonds went higher this week and the mortgage interest rates went along for the ride upwards. Consumer confidence did rise nationwide in May, representing the largest rally since records of this data have been kept. Freddie Mac said that according to the National Association for Business Economics, their forecasters were predicting that this recession would end before 2009 is over. However, they said the recovery would be less than spectacular. Much more modest.
Again it was noted that the housing market was holding the economy back. But if you read the previous posts you noticed that existing home sales in the US and in Florida were up. 45% of the sales were "distressed homes" (foreclosures, short sales, etc.) which does tend to skew the figures and certainly the average prices. But with a first-time home buyers $8,000 tax credit, low interest rates, low home prices, there should be more transactions than there are. But that could pick up in the summer when home buyers traditionally make purchases. I also think that once people get a better idea of where the economy is TRULY going they will be makine some decisions and hopping off the fences. Uncertainty does tend to put the brakes on any large purchases. But with consumer confidence climbing in many places, perhaps we will see some changes come this summer.
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