Today, 11/25/09,(a day earlier this week due to the Thanksgiving holiday) Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.78% (4.75% in the southeast), down from 4.83% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.29%, down from 4.32% last week. A year ago the 30 year rate was 5.97%.
This is the 4th week in a row that long-term interest rates have fallen. Interest rates for 30 year fixed-rate loans "tied an all-time record". The new low rates are equal to a $100 decrease in the monthly payment on a $200,000 loan as compared to this year's peak rate back in June 2009.
Housing prices appear to be firming up at inventory shrinks. Price declines slowed for the 6th straight month in September, down just 3%. That was the smallest decline since February of 2008. In addition, 11 of the 20 major metropolitan areas actually had price increases between August and September of this year.
The real estate market in Zephyrhills is heating up even more. And not just from first-time buyers. Our winter crowd is returning from the north with thoughts of buying vacation homes here. Lots of calls and buyers stopping in to see me. For us, the winter season is a busy one, and with interest rates so low, we may see more activity this year than is normal. Let's hope so!
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