Today, 10/08/09, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.87% (4.92% in the southeast), down from 4.94% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.33%, down from 4.36% last week. A year ago the 30 year rate was 5.94%.
The last time the average 30 year fixed-rate interest rate was lower was back on May 21st of this year!
Interest rates continued their fall and that means that a person with a $200,000 30 year fixed-rate mortgage could take $134 off his/her monthly payments compared to what they were paying a year ago. I am sure you could think of a lot of things to use that extra money for, right? Like getting a pay raise for just living in a home.
Mortgage applications have increased to a 19-week high since the start of October. And financing applications for home purchases (as opposed to refinancing) were at their strongest pace since the start of this year!
There are just a little over 50 days until the $8,000 tax credit for first-time homebuyers will expire at the end of November 2009. Still nothing concrete on an extension or expansion of the program. So do not bet your life on it. Hopefully they will do something that will at least benefit new buyers, but it would be nice if the program also covered all home buyers when they purchased their personal residences.
In the meantime, you may want to let your representatives in Washington know how you feel about this credit. You can find your Senators here: www.senate.gov and your Congressman here: www.house.gov E-mail them and let them know your thoughts. It would be nice if all of us could take advantage of this tax credit. It will assist buyers who want to purchase a new home, and it will also help sellers by making the pool of potential buyers much, much broader.
Do keep in mind that we are a very large country. So figures that come out for the entire nation, may have little or no relevance for your particular area. In the end, it is best if you speak with a local REALTOR or financing expert to see what the situation is for your part of the United States. Florida is not Michigan, nor is Maine the same as California. Market conditions can be very different from place-to-place. Also, your own credit history, the property you want to buy, etc. will effect your specific loan options and interest rates. Your mortgage broker or bank loan officer can give you more specific information.
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