Today, 12/10/09, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 4.81% (4.80% in the southeast), up from 4.71% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.32%, up from 4.27% last week. A year ago the 30 year rate was 5.47%.
Due to a more favorable unemployment report, bond interest rates increased, and mortgage interest rates played "Follow-the-Leader". The US economy only lost 11,000 jobs last month and that was a lot fewer than had been predicted. Plus September and Octobers unemployment figures were revised in a more positive direction.
Even with the slight increase this week, the rates are still well below those of last year. That works out to $81 less per mortgage payment on a $200,000 30 year fixed-rate loan.
And do not forget that prices are also down and there are tax credits available now that can help both first-time home buyers, as well as many purchasers who already own a home. These credits will expire at the end of the first quarter next year, so do not delay too long.
Again, here in Zephyrhills, Florida we are just beginning a peak period for the sale of vacation homes. Lots of out-of-state license plates around and I am getting many more calls about homes for sale. There are buyers out there RIGHT NOW. And after the holidays we will have an even bigger influx of "snowbirds". Many of whom will have the financial ability to make purchases. I say "Welcome to them all!"
Do keep in mind that we are a very large country. So data that comes 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