Today 6/4/09 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.29% (5.27% in the southeast), up from 4.91% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.79%, up from 4.53% last week. A year ago the 30 year rate was 6.09%. The change this week was much larger than recent ones. 0.38 more than last week! Rates are still historically low, but not nearly as nice as just a couple of weeks ago. If you waited too long, you may have missed out in the latest sag in rates. Will they go back down or go even higher. Better speak with your lender or mortgage broker ASAP.
Long-term bond rates had been going up and the mortgage interest rates finally caught up with them. Mortgage interest is not sitting at a 25-week high, according to Freddie Mac. They also said that the slowness in the housing market was dragging the economy downward as well. In just the first quarter of 2009 alone, it took 1.4 percentage points off our overall national gross domestic product (GDP). Not since late in 2006 has it been that much.
However, there still appear to be glimmers of hope that the housing market is improving somewhat. According to the National Association of REALTOR affordability has never been as good as it is now. Prices are down, there is an $8,000 tax credit available for many buyers, and interest rates are still lower than in past years. NAR reported that pending exisiting home sales rose for the third month in a row. 6.7% in April 2009. The biggest increase since October 2001. So all is not doom and gloom.
But do watch those interest rates and do not try to guess when it will be the lowest it can go. No one can predict that. When the rates are "pretty good" and are acceptable to you and your budget, that may be the time to make a move. If you wait to long as you try to anticipate whether rates will go even lower, you are likely "to get caught with your pants down and interest rates up". So be careful.
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