Today, 5/6/10, Freddie Mac reported that the average mortgage interest rate for 30 year fixed-rate mortgages was 5.00% (4.97% in the southeast), down from 5.06% a week ago. The average interest rate for 15 year fixed-rate mortgages was 4.36%, down from 4.39% last week. A year ago the 30 year rate was 4.84%.
Yields on notes and bonds issued by the US Treasury went south this week, and the rates on mortgages followed them down the hill. This is the lowest that rates have been in 6 weeks. A lot of experts had said rates would continue to climb, so it is nice to see that instead they have come down, at least temporarily.
The homebuyer tax credit program helped boost home sales in March, and on the face of it, it appears that April sales will be up as well due to that program which now has ended.
According to Freddie Mac, "Three of the four Census regions showed an up tick in sales (in March), led by the South with a 12.7% gain, while sales in the Northeast fell 3.3%"
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