Today, 11/12/09, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.91% (4.92% in the southeast), down from 4.98% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.36%, down from 4.40% last week. A year ago the 30 year rate was 6.14%.
Lower rates only served to make housing more affordable and available for the backlog of buyers waiting out there. You might want to read the post just before this one and download the brochure about "Buying vs Renting". The downward plummet of prices appears to be slowing or even stopping in many areas, and consumer demand for conventional mortgages at banks is on the rise.
Twenty percent of the top metropolitan zones actually had postive yearly growth last quarter compared to just 12% of them in the first quarter of 2009.
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