Today 8/2/07, Freddie Mac reported that average mortgage interest rates for 30 and 15 year loans were just slightly lower. Nationally the average mortgage interest rate for 30 year fixed-rate mortgages was 6.68% (6.62% in the southeast), a drop from 6.69% a week ago. The average interest rate for 15 year fixed-rate mortgages was 6.32%, down from 6.37% last week.
Investors moved away from the subprime lending market and bought the safer Treasury securities. This caused the bond yields to be lower and let mortgage rates dip a bit. Sales of existing and new homes dropped again in June and prices continue to give ground. This is more acute in areas where the markets and prices soared two years ago.
There are some tentative signs that market stabilization is starting. The negative effects on the GDP should lessen as construction spending levels off. And the 5% increase in pending June home sales may indicate that actual sales in July and August may reverse last month's sales decline.
Do keep in mind that we live in a very large and complex country. What happens in California is not necessarily what is happening in Florida. And what happens in Florida may be a far cry from what occurs in Michigan. Real estate is still very much a local issue.
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