John's Florida Real Estate Blog


Average Mortgage Interest Rates Drop ANOTHER Week! Can You Believe It?

Today, 12/3/09,  Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.71% (4.75% in the southeast), down from 4.78% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.27%, down from 4.29% last week. A year ago the 30 year rate was 5.53%.

The interest rate for 30 year fixed-rate loans has never been this low since Freddie Mac began its weekly surveys back in 1971!!!

This marks the 5th week in a row that rates have fallen. Overall price reductions and the continuing low interest rates have contributed to a very affordable housing market for many buyers. Toss in the tax credit that is now available for even more buyers, and you have a near perfect situation for getting that new home. In my opinion, this like having a blackjack deck full of 10's and aces. As far as buyers are concerned, we may never see this alignment of great circumstances for a long time to come. Though sellers may feel they are left out, this is not true. The vast majority of those that sell will be buying another home, and they will do it with the same benefits that I mentioned above: low interest rates, low prices, and a tax credit as well.

As I mentioned in a previous post, the National Association of REALTORS has reported that the sales of existing homes is on the rise and has been throughout 2009. Inventory is dropping and that can only serve to help stabilize prices. To many here in Zephyrhills, it looks like the bottom has been reached. In my humble opinion, we got there several months ago. Other parts of the country may still have some falling to do though. But affordability seems to be on the rise in almost all markets.

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: 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: . 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.

I would also be happy to assist you in any way that I can. Just call me at: 813-783-4444 or e-mail me at:  You are also welcome at my webpage:

John Elwell - REALTOR


Bill Nye Realty, Inc.


Licensed in Florida


Comment balloon 2 commentsJohn Elwell • December 03 2009 06:14PM


The headlines always get the phones ringing. Unfortunately, the Freddie Mac Primary Mortgage Market Survey is always a week behind. I can already tell you next weeks report will break those winning ways as mortgage rates have drifted upwards by almost 0.375% this week. Even so, these are the best times for home buyers.

Posted by James K Barath, CMPS, FICO Pro, Certified Military Housing Specialist (Canopy Mortgage, LLC) over 10 years ago

Will just have to see how this all plays out. The recent downward trend is not a bad thing and with the lower prices and tax credits in play, this is a good time for buyers and sellers to get moving. Sadly, many will wait until it is too late to put a deal together. Even if rates climb a bit to balance out, they will still be at historic lows. I can remember in the early 1980's when they were around 20% for a 30 year fixed rate loan. Talk about a tough market. Lots of owner financing going on back then. May we never see those times again.

Posted by John Elwell, You Deserve a Full-Time Agent, Not Reduced Results (CENTURY 21 Bill Nye Realty, Inc.) over 10 years ago

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