John's Florida Real Estate Blog


Freddie Mac: Average Mortgage Interest Rates Up a Bit, But Still Well Under 5%

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: 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 10 2009 04:57PM


Freddie Mac's methodology is very questionable and often misleading for us here in Northwest Indiana. One of the issues with the weekly survey is that each region is weighted based on loan size, prevailing interest rates and fees. Consequently, high cost states have a greater impact on the published rates. Even with that being said, mortgage rates are still at historic lows throughout the country.

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

As I state in all of my messages, this is a large country, and what is  happening here is not necessarily what is happening in another section. Even within an area, rates can vary depending on the lender and the programs they are offering. Toss in a dose of public programs and it can be a real mish mash. Getting a good mortgage officer or broker is key.

As to the exactness of Freddie Mac's numbers, we all know that numbers can be manipulated. However, the trends of the recent weeks have been clear. Rates are well below what we were paying just a few years ago. My customers are doing quite well when getting financing.

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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