Today 6/11/09 Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.59% (5.53% in the southeast), up from 5.29% a week ago. The average interest rate for 15 year fixed-rate mortgages was 5.06%, up from 4.79% last week. A year ago the 30 year rate was 6.32%. Though not as big a jump as last week's, it was still no small potatoes! These are the highest rates in 7 months. Will they go back down or go even higher. Who knows? If I were you I would speak with your lender or mortgage broker ASAP.
The economic reports showed that fewer jobs had been lost in May and this boosted bond yields. Ever the one to play follow-the-leader, mortgage interest rates increased as well. Even earlier job loss reports were revised and showed that less jobs had gone bye-bye than the experts had first reported. Some are even hinting that the Federal Reserve may raise its rates in the not-too-distant future. Funny how when there is positive new interest rates climb. Just a few weeks ago the average was nearer to 4.50%!
Refinancing activity is slowing since now the rates are higher and to refinance is not so advantageous. However, applications for loans for new home purchases rose. Could be people think that interest rates have now "bottomed out", and they are afraid they will not get a good rate unless they move now. Hard to tell, but that could be a motivator.
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".Trying to avoid that could be what is making some buyers finally get off the fence based on recent interest rates increases.
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